TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 220

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A

UNCLASSIFIED

FM WASHINGTON

TO TELELETTER FCO

TELELETTER NFR

OF 050015Z MARCH 92

UNCLASSIFIED

M413091/2

Mr. Stone

useful of

141334

MDTTAN 3968

учи

ran

undestend it.

s

5/3

Ed you try to set it dow in fabular form pse?

FROM: S D PATTISON, WASHINGTON

TO: T FURNESS ESQ., HKD, FCO

Useful

Clarification of

Things to

оспо

5/3

Belenes

ли

9/2=

(not seen

CHINA/MEN

1.

THANK YOU FOR YOUR TELELETTER OF 2 MARCH. THESE ARE, INDEED, COMPLICATED ISSUES.

2.

THE ASSUMPTION IN YOUR PARA 2 IS CORRECT. THE VOTE ON 25 FEBRUARY WAS TO PLACE CONDITIONS ON RENEWAL OF MFN FOR 1992/1993. AS YOU MAY HAVE ALREADY SEEN IN THE PRESS, THE PRESIDENT VETOED THE BILL ON 2 MARCH, ARGUING THAT THE ADMINISTRATION'S POLICY OF ENGAGEMENT WITH CHINA WAS PAYING DIVIDENDS. BUSH POINTED TO PEKING'S AGREEMENT TO PROTECT US INTELLECTUAL PROPERTY RIGHTS, ABIDE BY MTCR GUIDELINES, AND ADHERE TO THE NPT. HE ADDED THAT IF THE CONGRESS PRESENTED CHINA'S LEADERS WITH AN ULTIMATUM THE RESULT

WOULD BE WEAKENED TIES TO THE WEST AND FURTHER REPRESSION.

3.

IT IS NOW OPEN TO THE CONGRESS (BOTH HOUSE AND SENATE) TO TRY

TO OVERRIDE THE PRESIDENT'S VETO. IN THEORY THEY CAN ACT ANYTIME

BETWEEN NOW AND THE END OF THIS CONGRESSIONAL SESSION (OCTOBER/NOVEMBER). IN PRACTICE, HOWEVER, SINCE THE LEGISLATION SETS CONDITIONS FOR MEN RENEWAL IN 1992/1993 THEY WILL HAVE TO ACT BEFORE THE TRADITIONAL DATE FOR RENEWAL (3 JUNE). A VETO, OF COURSE, CAN ONLY BE OVERRIDDEN IF TWO THIRDS OF MEMBERS OF BOTH HOUSES VOTE TO DO SO. THE RESULT IN THE HOUSE OF REPRESENTATIVES

IS A FOREGONE CONCLUSION GIVEN THE MAJORITY IN FAVOUR OF THE BILL

LAST TIME (409-21). THE ADMINISTRATION'S HOPES ARE, THEREFORE, PINNED ON THE SENATE, WHERE THEY NEED 34 VOTES TO SUSTAIN A VETO. SINCE THEY MUSTERED 39 VOTES LAST WEEK, THEIR POSITION SEEMS SECURE.

4.

But Cradock?

MFN FOR CHINA HAS TO BE RENEWED ANNUALLY. THE EXPIRATION DATE IS 3 JULY, BUT THE PRESIDENT WILL ANNOUNCE HIS INTENTION ON OR

BEFORE 3 JUNE. ASSUMING HE DECIDES TO RENEW MFN, CONGRESS WILL

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UNCLASSIFIED