CONFIDENTIAL
MDHIA
CALLS FOR RENEWAL TO BE MADE SUBJECT TO CONDITIONS. THIS WOULD BE BAD NEWS FOR HONG KONG. THERE WOULD BE DOUBT AS TO WHETHER CHINA WOULD ACCEPT THEM, WHETHER CHINA COULD MEET THEM AND WHAT FURTHER CONDITIONS MIGHT BE IMPOSED IN LATER YEARS. THE RESULTING UNCERTAINTY WOULD BE A MAJOR DISINCENTIVE TO INVESTMENT IN HONG KONG.
147507
415383
I BELIEVE THAT BOTH THE WIDER INTERNATIONAL INTEREST IN SUPPORTING THOSE IN CHINA COMMITTED TO THE POLICY OF OPENING OUT TO THE WEST, AND THE HONG KONG POINTS I HAVE SET OUT ABOVE, OUTWEIGH THE ARGUMENTS AGAINST RENEWAL OR FOR CONDITIONAL RENEWAL.
OUR EMBASSY AND THE HONG KONG GOVERNMENT WILL CONTINUE LOBBYING ON THE HILL, ESPECIALLY WITH SENATORS, FOR A FAVOURABLE VOTE. AND I WOULD BE CONTENT FOR THE ADMINISTRATION TO DRAW ON THE CONTENTS OF THIS LETTER IF IT WOULD HELP.
PLEASE LET ME KNOW IF THERE IS MORE WE CAN USEFULLY DO TO BRING ABOUT A SATISFACTORY RESOLUTION OF THIS ISSUE.
MESSAGE ENDS
HURD
YYYY
MAIN
71
LIMITED
HKD
FED
NAD
JOINT DIRECTORATE EAPD/ODA
ECONOMIC ADVISERS
ERD
ESAU
ESED
NNNN
DISTRIBUTION
71
RAD
NEWS D
PS
PS/LORD CAITHNESS PS/PUS
SIR J COLES
MR BAYNE
MR MILES
MR BURNS
PAGE 2 CONFIDENTIAL
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