TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 162

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Overlap between jurisdictions of different departments. He has said that he intends the bill to be a contribution to the debate and a suggestion for consideration next time the Export Administration Act comes up for re-authorisation, as he is retiring at the end of this Session.

China MFN and Hong Kong

16. The Senate was not able to overturn the President's veto of HR2212, although the House had mustered the necessary two thirds majority. In an ominous new development, Senator Baucus has begun to talk about withdrawing support for the President's policy towards China if the NAFTA does not include suitable safeguards on the environment and unemployment. This is probably at this stage nothing more than an attempt to put pressure on the Administration over treatment of environmental and labour issues in the NAFTA. If so,

it is an effective lever: the Administration badly needs Baucus' support on China. They will probably have to look a little harder in their cupboard for something to satisfy Baucus.

17. Now that the President has announced his intention to renew MFN for China again, the proponents of conditional renewal are discussing their strategy. Congressman Pease has introduced a new bill which is reported (we have not seen it yet) to condition MFN on measurable progress on improving human rights, removing trade barriers and halting illegal weapons sales. If these conditions are not met, MFN would be revoked for goods made in Chinese State-owned factories.

18.

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At the end of last month, the Senate approved Senator McConnell's United States Hong Kong Policy Act (S1731). The bill, which I copied to Mary Grew recently, consists mainly of non-binding provisions, but does state that the US shall continue to treat Hong Kong as a separate territory after its reversion to China in 1997. Included in the non-binding provisions are proposals for the US to expand its trade ties with Hong Kong. There is a similar bill in the House (HR 3522), but it has not yet been considered by a sub-committee.

Trade with the Soviet Union

19. Bills have been introduced into both House and Senate (HR4527, HR4714, S2504) to remove some of the restrictions on assistance to and trade with the republics of the former Soviet Union. No hearings or mark-ups have yet been scheduled. Provision to make the republics of the former Soviet Union eligible for GSP is of course contained in the trade bill (HR5100).

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/ Trade with Cuba

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