CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 3254
OF 17104OZ OCTOBER 91
CONFIDENTIAL
cale MKB 090/4
TOP COPY
کاح
055070
MDLIAN 7614
Q DIST?
HOW
INFO ROUTINE WASHINGTON, PEKING, BTC HONG KONG, DTI, ACTOR
(14
WASHINGTON TELNOS 2624 AND 2658: US/CHINA TRADE ISSUES
1. THE OVERALL ASSESSMENT IN SECOND TUR TALLIES CLOSELY WITH OUR
OWN.
2. ON THE RECOMMENDATIONS IN PARA 5 OF SECOND TUR, WE AGREE THAT THERE WILL NEED TO BE FURTHER CONTACT WITH THE US ADMINISTRATION AFTER THE LIST OF PRODUCTS IS AVAILABLE. WE WOULD PREFER TO WAIT UNTIL WE HAVE SEEN THE LIST BEFORE DECIDING ON THE NATURE OF
CONTACT AND THE TACTICS WE SHOULD EMPLOY. WE MUST OF COURSE PROTECT OUR OWN INTERESTS, AND SATISFY THE DOMESTIC LOBBY HERE. HOWEVER WE CONTINUE TO BE AWARE OF CHINESE SENSITIVITIES AND OF THE POTENTIAL FOR MISUNDERSTANDING, PARTICULARLY WITH RESPECT TO GOING ON THE PUBLIC RECORD. WE WILL NEED TO WEIGH THE VARIOUS FACTORS ONCE WE HAVE AN IDEA OF WHAT IS AT STAKE IN TERMS OF
POSSIBLE DAMAGE TO TRADE.
3. FOR INFORMATION, OUR DIRECTOR-GENERAL OF TRADE MADE CALLS LAST WEEK ON DEPUTY USTR (KATZ), COMMERCE AND STATE DEPARTMENT OFFICIALS, AND SOME LEADING CONGRESSMEN. ALL RESPONDED SYMPATHETICALLY TO THE PROPOSAL THAT ANY RETALIATION SHOULD NOT
HURT HONG KONG.
4. SEPARATELY, USTR AMBASSADOR HILLS CALLED ON THE DEPUTY TO THE GOVERNOR AND SECRETARY FOR TRADE AND INDUSTRY ON 14 OCTOBER. SHE TOO PROFESSED A DESIRE NOT TO HURT HONG KONG. HOWEVER SHE CHARACTERISED THE CHINESE AS INFLEXIBLE SO FAR. IF THIS ATTITUDE PERSISTED IN THE LAST DITCH TALKS WITH MASSEY NEXT WEEK, AND IN THE BROADER MARKET ACCESS NEGOTIATIONS, THE EFFECT WOULD BE TO CUT THE PRESIDENT'S VETO STRENGTH ON MEN. THIS WAS A LINKAGE THE
CHINESE WOULD BE WISE TO APPRECIATE.
FORD
YYYY
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