11 September 1991
Dr Philip Baker Third Floor
Grays Inn Chambers London WC1R 5JA
Dear Dr Baker
$tile
Foreign & Commonwealth Office
Zest
London SWIA 2AH
Telephone: 071-
Gary?
Thank you for your letter of 23 August and the enclosed extract from the former Chinese Public Security official's statement about the alleged conditions at the Shenzhen detention centre. I too apologise for the delay in replying; we have been somewhat preoccupied with matters arising from the Prime Minister's visit to China.
You raise a number of questions about our and the Hong Kong Government's policy towards the unconditional renewal of China's MFN status in the United States.
If China were to lose MFN status the effect on Hong Kong would be serious: a loss of some 40,000 jobs and a halving of current GDP growth. That is what we have been lobbying to get across to the US Government: that Hong Kong, as an innocent bystander, would be badly hurt by the withdrawal of MFN status.
The point about needing unconditional renewal is that the attachment of conditions causes uncertainty. Businessmen would be unwilling to make investment decisions if they did not know what might happen in a year's time. The result could be almost as damaging as non-renewal.
We believe that the way to encourage reforms and improvements in human rights in China is not through economic sanctions. It is no accident that the process of reform in China has accelerated with the increase in foreign businesses operating there. Those who would end political and economic reform in China have the most to gain if China's MFN status were withdrawn.
Yans sincerely Chunity then sainty.
CJ Sainty
Hong Kong Department
RAMABA
CC
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