TNAG-2244-FCO40-3225-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 73

CONFIDENTIAL

036 MDHIAN 5697

WHAT IS BILATERAL ISSUE BETWEEN THE US AND CHINA. AS IN THE SPECIAL/SECTION 301 ISSUES, THERE WOULD BE DANGERS OF OUR GETTING CAUGHT IN THE CROSS FIRE, AND OF THE CHINESE QUESTIONING OUR MOTIVATION. WE ALSO BELIEVE THAT THE US ADMINISTRATION CAND MANY

IN CONGRESS) ARE ALIVE TO OUR INTERESTS IN THIS, AS IN OTHER U S/CHINA ISSUES. WE WILL NEVERTHELESS MONITOR THE SITUATION VERY CLOSELY AND KEEP IN MIND THE POSSIBILITY OF SOME ACTION SHOULD THE NEED ARISE.

WILSON

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PS/LORD CAITHNESS

SIR J COLES

MR BURNS

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