TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 73

M3 090/4 ale

Ch

5 JUN 1991

CALL ON THE SECRETARY OF STATE BY SENATOR BIDEN: 31 MAY

Points to make

MFN status for China

Pleased that the President has decided to renew China's

MFN status.

Our concern is about the effects of non-renewal on Hong

Kong. Renewal with conditions which created uncertainty

would also be serious for Hong Kong.

-

We estimate that loss of MFN status would mean a loss of

40,000 jobs in Hong Kong and a halving of their current GDP

growth.

-

Appreciate that there are current concerns over China

its human rights record, arms proliferation and

infringements of patents. But the way to try to influence

China is surely not to isolate it.

Hope there will not be too much of a battle over this

issue in the coming months.

ROZAWZ/1

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