RESTRICTED
FM WASHINGTON
TO DESKBY 31183OZ FCO
TELNO 1453
OF 311635Z MAY 91
RESTRICTED
WAB 540/4
69014 TOP COPY Q DIST?
725
103357
MDHIAN 9203
INFO IMMEDIATE HONG KONG, PEKING, UKREP JLG HONG KONG, ACTOR
119
YOUR TELNOS 954 AND 965: MEN STATUS FOR CHINA
1. WE, AND THE HONG KONG GOVERNMENT OFFICE, HAVE BEEN ACTIVELY LOBBYING ON THE HILL, AND WITH THE MEDIA. WE SHALL KEEP UP THE PRESSURE. THE GOVERNOR'S LETTER TO CONGRESSMEN HAS ISSUED, AND THE HONG KONG OFFICE ARE CIRCULATING FOLLOW-UP MATERIAL TO CONGRESSMEN. THE HONG KONG ARGUMENT HAS SO FAR RECEIVED GOOD COVERAGE IN THE PRESS AND WAS EXPLICITLY MENTIONED BY PRESIDENT BUSH IN ANNOUNCING
HIS DECISION. WE WILL ALSO NEED TO CONTINUE TO KEEP IN CLOSE TOUCH
WITH THE ADMINISTRATION ON THIS ISSUE IN ORDER TO CONCERT TACTICS.
A MESSAGE FROM YOU TO SECRETARY BAKER IN THE FAIRLY NEAR FUTURE
WOULD BE APPROPRIATE. IT SHOULD BE IN A FORM WHICH THE ADMINISTRATION CAN USE PUBLICLY IN LOBBYING WITH CONGRESS, SHOWING THE IMPORTANCE WHICH THE BRITISH GOVERNMENT ATTACHES TO THE ISSUE BECAUSE OF THE IMPLICATIONS FOR HONG KONG. IT WILL BE IMPORTANT TO GET THE TONE AND CONTENT EXACTLY RIGHT, AND WE WOULD WELCOME THE OPPORTUNITY TO COMMENT ON THE DRAFT.
2. IT IS PRIMARILY FOR HONG KONG TO COMMENT ON THE LIKELY IMPACT OF FUTURE CONDITIONALITY ON HONG KONG'S ECONOMY. AS WE HAVE REPORTED THERE IS A WIDESPREAD EXPECTATION HERE THAT THE ADMINISTRATION WILL HAVE TO ACCEPT SOME FORM OF LOOSE CONDITIONALITY AS THE PRICE FOR SECURING MFN THIS YEAR. BUT THE ADMINISTRATION HAVE NOT CONCEDED THIS YET. THEY WILL CERTAINLY WANT TO RESIST CONGRESSIONAL PRESSURE FOR STRICT CONDITIONS. IT WOULD BE TACTICALLY UNWISE TO CONCEDE CONDITIONALITY AT THIS STAGE. IT MIGHT STRENGTHEN THE ADMINISTRATION'S CASE WITH CONGRESS IF WE WERE ABLE TO POINT TO THE DAMAGING CONSEQUENCES FOR HONG KONG OF CONDITIONS WHICH WOULD ACT AS A SERIOUS DISINCENTIVE TO INVESTMENT IN HONG KONG IN THE RUN-UP TO 1997.
3.
THERE IS STILL A GOOD PERIOD TO GO BEFORE MATTERS COME TO A HEAD. I PROPOSE TO FOLLOW UP THE WIDER LOBBYING WE HAVE ALREADY PLANNED COUR TELNO 1279) WHICH WILL INCLUDE A LETTER FROM ME TO A WIDERANGE OF CONGRESSMEN
-
BY SENDING A PERSONAL LETTER TO THOSE
1
PAGE RESTRICTED
No comments yet.
Private notes are available after approval.