CODE 18-77
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FORMS OF US CONDITIONALITY FOR CHINA MFN
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نقیب
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1. Conditionality at the first congressional hearing for China MFN on May 29 was being discussed in terms
in terms of guaranteeing specific human rights (below and telno 1474) although the chair was in favour of withholding MFN without revocation. Few in favour of unconditional extension.
2.
DTI was of the opinion that copyright
that copyright protection for pharmaceuticals and other intellectual property might be on the agenda. They will copy Washington commercial attaché response to us. HKD have telegrammed Hong Kong independently to ask clarification on what type of conditionality is seen as damaging.
3. US appear to be addressing nuclear and missile proliferation issues outside of MFN. On 27 May the White House announced trade restriction measures on exports of satellite and missile technology and high speed computers by refusal of export licences to US companies.
4. At the congressional hearing human rights conditionality was proposed as follows (by Democrat Pelosi):
* remove restrictions of VOA broadcasts and freedom of press
end harassment of Chinese citizens in US
*
*
*
allow human rights groups to monitor trials freedom from torture
terminate restrictions on peaceful assembly
5. The above congressman also suggested one condition to MFN renewal might be to require China to adhere to the terms of Joint Declaration, but this was opposed by the ex-US ambassador to Hong Kong Peking.
6. The central issue for Hong Kong is whether objecting to any type conditionality is the best course of action. Non-adherence to conditionality by China could result in eventual removal of MFN status even though the conditionality itself has no direct trade effect on Hong Kong.
3 June 1991
C Lane Economic Advisers WH 426b 270 2727
Un
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