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6. Speaker Foley said that there were few questions which divided the Administration and Congress as much as the question of MFN status for China. There were also significant divisions in Congress itself. Those against renewing MFN status included both conservatives and liberals. The Speaker did not expect the Presidential veto to be overriden by Congress but MFN would be conditional on encouraging China to do more on Human Rights and other areas of concern. Congressman Dante Fascell acknowledged the Secretary of State's points in favour of allowing MFN to continue. The argument had been well made in lobbying in Washington. Senator Paul Sarbanes said that there was a growing perception in the US that economic and trade relations were being abused by China the US trade deficit had tripled. The Chinese were maximising exports and minimising imports. There were also concerns on human rights and missile transfers. Congressman Larry Smith also noted the Secretary of State's concerns about Hong Kong. But in US terms, Hong Kong was not the key for justification of renewed MFN, when the Chinese continued to ignore human rights. In this context, Mr Smith mentioned the coercive abortion programme as well as political prisoners. Possible Iran/China collusion over nuclear weapons was also extremely worrying. The US record on this was not spotless, but if the US renewed MFN for China, US technology could be helping
Iran.
7.
The Secretary of State commented that two things were presently happening in China. There was a process of economic reform with the streets and shops full and food on every street corner: the further South, the stonger the enterprise culture. But Peking was ruled by those who did not welcome this. They were trying to reconcile political authoritarianism and contempt for human rights with economic enterprise. If MFN were withheld, it would hurt those doing the right thing, and not deter those doing the wrong thing. However, the Secretary of State said he shared concerns on control of arms and technology.
Vietnamese Migrants
8.
The Secretary of State, who before the meeting had seen the UN High Commissioner for Refugees, noted that Rong Kong still abided by its international obligations in giving first asylum, unlike others in the region. But the problem was intolerable and being exacerbatd by "Double Backers". The Legislative Council could soon be passing an uncompromising resolution.
South Africa
9.
The Secretary of State referred to the pace of dismantlement of apartheid. Few could have thought the current position attainable a few years ago. The UK had been taking action to relieve sanctions and persuade EC
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