TNAG-2244-FCO40-3225-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 147

CONFIDENTIAL

MKB CATOR COPY

Мав

Q DIST?

184

112700

MDHOAN 7564

CONFIDENTIAL

FM FCO

TO FLASH WASHINGTON TELNO

1271

OF 22180OZ JULY 91

AND TO IMMEDIATE HONG KONG, PEKING, UKREP JLG HONG KONG

PERSONAL FOR MEYER FROM PAUL, HKD

MFN STATUS FOR CHINA: MESSAGE FROM THE PRIME MINISTER

1. THE PRESIDENT HAS TOLD THE PRIME MINISTER THAT THE VOTE ON MFN IN THE SENATE IS ANTICIPATED TO TAKE PLACE ON 23 JULY. THE PRESIDENT HAS ASKED THE PRIME MINISTER TO SPEAK WITH A NUMBER OF 'SWING VOTE SENATORS ON THE ISSUE. HOWEVER THE PRIME MINISTER DOES NOT PERSONALLY KNOW THE SENATORS INVOLVED AND HAS THEREFORE ASKED THAT YOU TELEPHONE THEM, MAKING IT CLEAR THAT YOU ARE DOING SO ON THE PRIME MINISTER'S BEHALF. THE PRIME MINISTER HAS APPROVED THE SHORT INTRODUCTION SET OUT BELOW WHICH YOU SHOULD

USE IN YOUR CALLS:

BEGINS

''I KNOW THAT THE SENATE WILL SHORTLY VOTE ON THE QUESTION OF CHINA'S MFN STATUS. I VERY MUCH HOPE THAT YOU WILL SUPPORT THE EXTENSION OF THAT STATUS UNCONDITIONALLY.

HONG KONG HAS EXTENSIVE ENTREPOT TRADE LINKS WITH CHINA AND WOULD BE VERY ADVERSELY AFFECTED IF MFN STATUS FOR CHINA WERE NOT RENEWED, OR IF CONDITIONS WERE ATTACHED WHICH LED TO UNCERTAINTY OVER FUTURE RENEWAL.

I BELIEVE THAT USING TRADE AS A WEAPON IN THIS WAY WOULD NOT BRING ABOUT THE CHANGES WE SEEK IN CHINA: RATHER IT WOULD HURT INNOCENT NEIGHBOURING TERRITORIES AND DAMAGE THE INTEREST OF THOSE IN CHINA WHOM WE HOPE TO ENCOURAGE.

ENDS

2. THE SENATORS INVOLVED AND THEIR TELEPHONE NUMBERS ARE AS FOLLOWS:

SENATOR BOB KASTEN

SENATOR BOB PACKWOOD

202-224-5323

204-224-5244

PAGE

1

CONFIDENTIAL