TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 34

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FM HONG KONG

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TO DESKBY 12120OZ FCO

TELNO 1890

OF 121102Z JUNE 91

CONFIDENTIAL

Gary

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Message

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INFO IMMEDIATE WASHINGTON, PEKING, UKREP JLG HONG KONG

& Mr Moon,

Du57 13/6

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MFN STATUS FOR CHINA

1. THANK YOU FOR FAXING ME THE TEXT OF HMA WASHINGTON'S DRAFT LETTER TO CONGRESSMEN.

2. MY ONLY COMMENT IS THAT THE WORD QUOTE INNOCENT UNQUOTE IN FIFTH LINE OF THE FINAL PARAGRAPH IS UNNECESSARY AND COULD BE MISINTERPRETED BY THOSE WHO READ THE LETTER AS CARRYING THE OPPOSITE CONNOTATION FOR THE PEOPLE OF CHINA (WHO WILL ALSO SUFFER FROM THE WITHDRAWAL OF MFN).

3. FOLLOWING OUR MOST RECENT LOBBYING EFFORTS IN WASHINGTON, CULMINATING IN THE BARONESS DUNN'S CALL ON SENATOR SIMPSON LAST WEEK, OUR PRESENT ASSESSMENT IS THAT THE PROSPECTS FOR RENEWAL WITH NO DIRECT CONDITIONS ATTACHED ARE LESS GLOOMY THAN THEY HAD RECENTLY SEEMED. SIMPSON SOUNDED VERY POSITIVE ABOUT THE PRESIDENT'S ABILITY TO OBTAIN MORE THAN 34 VOTES IN THE SENATE TO SUSTAIN HIS VETO OF A CONDITIONALITY BILL. IN ONE OF THE EARLIER CALLS MADE BY OUR SECRETARY FOR TRADE AND INDUSTRY, SENATOR DOLE ALSO SOUNDED OPTIMISTIC. HE INDICATED THAT, IN HIS VIEW, THE ONLY GESTURE THAT THE PRESIDENT MIGHT ULTIMATELY NEED TO MAKE IN ORDER TO SUSTAIN A VETO WOULD BE TO SEND A LETTER TO CONGRESS LISTING THE MEASURES (SUCH AS THOSE SET OUT IN HIS YALE SPEECH ON 28 MAY

PARA. 1 OF YRTELNO 1040 REFERS) THAT HE HAS TAKEN OR MAY

PROPOSE TO TAKE AGAINST CHINA IN AREAS UNRELATED TO MEN.

4. OTHERS WHO HAVE RECENTLY BEEN IN WASHINGTON HOWEVER TAKE A MORE PESSIMISTIC VIEW. WHICHEVER ASSESSMENT IS CORRECT, IT IS CLEAR THAT WE NEED TO KEEP UP OUR COLLECTIVE EFFORTS IF RENEWAL

WITHOUT UNATTAINABLE CONDITIONS IS TO BE ACHIEVED.

WILSON

YYYY

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