TNAG-2244-FCO40-3225-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 201

Answer

"Renewal by the United States Government of Most Favoured Nation Status for China is of great importance to Hong Kong. I therefore warmly welcomed the recent decision by the President of the United States to renew MFN unconditionally. We hope that both the House of Representatives and the Senate will give their support to the President on this issue.

Hong Kong's economy is now inextricably linked with

that of China. More than two-thirds of Chinese exports to the United States are routed through Hong Kong. It

has been estimated that non-renewal of China's MFN could

result in a loss of some 43,000 Hong Kong jobs, a drop of up to a half in Hong Kong's current GDP growth and a loss

of USD9-12 billion in trade. American commercial interests and investment in Hong Kong would also be

adversely affected.

There have been some calls for renewal to be made

subject to conditions. But this too would be bad for

Hong Kong. The resulting uncertainty would be a major disincentive to investment in Hong Kong, (at a critical time in its history".]

RH T Gozney