TNAG-2452-FCO40-3569-Future-of-Hong-Kong-constitutional-development-1992 — Page 141

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already in play on this pott, following Lu Ping's talks in Washington. He thought that it was possible to make two

points:

that it would be good for his credibility if he could be

seen to be standing up for Hong Kong's interests in the UK;

that China should recognise that the way they dealt with

the Hong Kong issue offered them the best prospect of getting

off the MFN hook.

12. The Secretary of State then asked what further action

could be taken to help sustain the Governor's position.

Sir R McLaren said that on relations with China the first

point was to go on stressing that there was no change in our policy towards Hong Kong and China and no plot to go back on earlier agreements with China about cooperation over Hong

Kong. The Secretary of State agreed and added a second point: that there should be no scope for wedge driving between HMG

and the Hong Kong Government. It was essential that all

concerned in London, Hong Kong and Peking should be solid in

their support for the Governor. In terms of future contacts with China, it was agreed:

that the Secretary of State and the Prime Minister would

take a firm line with Zhu Rongji;

on Sino-British trade, the timing of announcement of any

framework agreement on ATP for China would need consideration

if the wider row with China continued to escalate. The

Governor underlined that he was strongly in favour in

principle of ATP for China, but thought that there could be some difficulty over an announcement of concessions finance to

China at a time when China was being difficult over Hong Kong.

The Secretary of State noted that there was a difference

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