TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 225

UNCLASSIFIED

FM WASHINGTON

TO ROUTINE FCO

TELNO 614

OF 192355Z MARCH 92

UNCLASSIFIED

Miz 091/2

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010550

MDLIAN 3077

Pa

INFO ROUTINE HONG KONG, UKREP JLG HONG KONG, PEKING

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OUR TELNO 548: US/CHINA: MFN

SUMMARY

1.

m

2013

SENATE FAILS TO OVERTURN PRESIDENT'S VETO OF A BILL SETTING CONDITIONS FOR MFN RENEWAL. MFN SAFE UNTIL THE NEXT RENEWAL DEBATE (JULY/AUGUST), BUT THE DEMOCRATS WILL TRY TO KEEP UP THE PRESSURE.

DETAIL

2. AS FORECAST IN TUR, THE SENATE VOTED ON 18 MARCH ON WHETHER TO OVERRIDE THE PRESIDENT'S VETO OF A BILL SETTING CONDITIONS FOR THIS YEAR'S MFN RENEWAL. BUT THE VOTE (60-38) IN FAVOUR OF AN OVERRIDE

FELL SHORT OF THE REQUIRED TWO THIRDS MAJORITY. THE PRESIDENT GOT ONE VOTE LESS THAN WHEN THE SENATE LAST VOTED ON 25 FEBRUARY (OUR TELNO 458) BECAUSE ONE FORMER SUPPORTER CHOSE NOT TO VOTE, APPARENTLY BECAUSE OF CONFLICTING PRESSURES OVER MFN WITHIN HIS CONSTITUENCY. TWO OTHER SENATORS SWITCHED THEIR VOTES, THUS CANCELLING EACH OTHER OUT.

3.

IN PRESSING FOR THE OVERRIDE VOTE NOW, THE DEMOCRATS APPEARED TO HAVE CONCLUDED THAT THE BILL IN ITS CURRENT FORM WAS UNLIKELY EVER TO BE PASSED, AND DECIDED TO CLEAR THE DECKS IN ORDER TO FOCUS ON PREPARATIONS FOR THE RENEWAL DEBATE LATER THIS SUMMER. THE NEXT STAGE IS LIKELY TO BE THE INTRODUCTION OF NEW BILLS SETTING CONDITIONS FOR RENEWAL IN 1993. BUT THESE WILL NOT BE TAKEN UP SERIOUSLY UNTIL THE 1992 RENEWAL DEBATE GETS UNDERWAY IN JULY/AUGUST (SEE PATTISON'S TELELETTER TO FURNESS OF 5 MARCH).

RENWICK

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