TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 233

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INFO IMMEDIATE PEKING, AMMAN, MODUK, ACTOR

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INFO IMMEDIATE UKMIS NEW YORK, CAIRO, RIYADH, KUWAIT, BAHRAIN

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SIR PERCY CRADOCK'S VISIT: MEETING WITH THE VICE PRESIDENT

1.

SIR PERCY CRADOCK CALLED ON THE VICE PRESIDENT THIS MORNING.

CHINA

2.

WE ASKED QUAYLE TO EXPRESS TO THE PRESIDENT OUR APPRECIATION FOR HIS DECISION TO VETO THE SENATE BILL IMPOSING CONDITIONS ON THE RENEWAL OF MFN STATUS FOR CHINA. SIR PERCY CRADOCK EMPHASISED THAT IT WAS VITAL FOR HONG KONG TO CONTINUE TO ENJOY MFN TREATMENT.

THE VICE PRESIDENT SAID THAT WHILE HUMAN RIGHTS REMAINED A MAJOR ISSUE, THE KEY U.S. CONCERN WAS WITH CHINESE CONDUCT OVER TECHNOLOGY TRANSFER.

IRAQ

3.

SIR PERCY CRADOCK SAID THAT SADDAM HUSSEIN WAS NOW OPENLY FRUSTRATING THE UN INSPECTION PROCESS AND PREVENTING THE DESTRUCTION OF BALLISTIC MISSILE MATERIAL. WE HAD TO OVERCOME THIS. THE VICE PRESIDENT AGREED THAT, IF FACED WITH A CLEAR THREAT, SADDAM HUSSEIN WOULD PROBABLY GIVE WAY. QUAYLE ADDED, HOWEVER, THAT SADDAM HUSSEIN HAD MISCALCULATED BEFORE AND ONE DAY MIGHT WAKE UP TO FIND THAT HE HAD MISCALCULATED AGAIN.

LIBYA

4. QUAYLE ASKED IF WE THOUGHT THAT BOUTROS GHALI WAS PLAYING THIS STRAIGHT. SIR PERCY CRADOCK SAID THAT WE DID. QUAYLE EXPRESSED

CONCERN ABOUT LIBYAN OFFERS TO HAND THE TWO LIBYAN AGENTS OVER TO SOME UNSPECIFIED THIRD COUNTRY. THIS WOULD NOT BE A SOLUTION

UNLESS THEY WERE HANDED ON TO US OR THE AMERICANS.

5. WE ARE REPORTING SEPARATELY THE EXCHANGE ON ASSISTANCE FOR

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