CONFIDENTIAL
012675 MDLIAN 4035
FRANKLIN
9. SHE HAD STRESSED TO PREMIER LI PENG THAT IT WAS IMPORTANT FOR THE CHINESE TO IMPROVE THEIR INVESTMENT ENVIRONMENT, AND, ON MEN, TO MAKE PROGRESS ON THE TRADE DEFICIT AND HUMAN RIGHTS. SHE WOULD SUPPORT IN PUBLIC THAT CHINA SHOULD HONOUR THE CONTRACTS GRANTED BY THE HONG KONG GOVERNMENT. SHE WAS KEEN TO USE THE REMAINING PART OF HER TERM TO PUSH FOR AN INVESTMENT TREATY BETWEEN US AND CHINA WHICH MIGHT MAKE IT EASIER TO MAKE PROGRESS ON AN IPPA BETWEEN US AND HONG KONG. (IT IS DIFFICULT TO SEE HOW THIS WOULD WORK OUT SINCE SUCH NEGOTIATIONS BETWEEN US AND CHINA WOULD INEVITABLY BE PROTRACTED.)
CLARK
10. THE US WANTED TO BE HELPFUL TO HONG KONG. MEN RENEWAL WOULD BE A GOOD OPPORTUNITY. IT WOULD BE USEFUL FOR HONG KONG TO ARGUE THE CASE FOR RENEWAL ON ECONOMIC GROUNDS. CONGRESS MIGHT TAKE DEVELOPMENT OF HUMAN RIGHTS IN CHINA INTO ACCOUNT.
NUNN
11. APART FROM MEN, THE US COULD HAVE OTHER LEVERAGE WITH CHINA SUCH AS THE SALES OF ARMS AND TECHNOLOGY. THE NEW ADMINISTRATION SHOULD BE GIVEN TIME TO CONSIDER A BROADER PLAN TO DEAL WITH CHINA. THIS WOULD TAKE A FEW MONTHS. CONTACT BETWEEN HONG KONG AND THE US SHOULD BE ON A QUIET LEVEL FOR THE TIME BEING, RATHER THAN THROUGH FORMAL VISITS. MY VISIT TO THE US (NEXT WORD UNDERLINED) SHOULD THEREFORE TAKE PLACE A FEW MONTHS AFTER CLINTON AND HIS TEAM HAD SETTLED DOWN.
HOLBROOKE
12. THE US PUBLIC OPINION WAS DIVIDED ON CHINA. THE BUSINESS COMMUNITY WAS HOWEVER WHOLLY OPPOSED TO IMPOSING CONDITIONS ON CHINA'S MEN STATUS. CLINTON HAD SO FAR BEEN VERY CAUTIOUS. ALTERNATIVES TO USING MFN IN DEALING WITH CHINA MIGHT BE DEVELOPED. SENATOR MITCHELL'S MOTIVE IN OPPOSING RENEWAL OF CHINA'S MFN WAS TO PROMOTE HUMAN RIGHTS IN CHINA, AS WELL AS TO EMBARRASS BUSH. IN DEALING WITH CHINA ON THE CONSTITUTIONAL PACKAGE, HONG KONG'S LEVERAGE WOULD BE TO FOCUS ON THE CONSEQUENCES FOR CHINA IN TERMS OF HER RELATIONSHIP WITH TAIWAN, US AND REST OF THE WORLD. HE WOULD DISCUSS HIS MEETING WITH ME WITH CLINTON'S TEAM. FOR THE TIME BEING IT MIGHT BE SENSIBLE FOR OUTGOING AND INCOMING US OFFICIALS TO PASS PRIVATE MESSAGES TO CHINA, SAYING THAT ANY IMPROVEMENT IN US/CHINA RELATIONS AND THE
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