TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 80

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нив HAB 091/2

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023522

MDLIAN 1198

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FM HONG KONG

TO PRIORITY FCO

TELNO 2306

OF 140303Z SEPTEMBER 92

INFO PRIORITY PEKING, WASHINGTON, BTC HONG KONG, DTI

U S/CHINA : SECTION 301 TALKS : EFFECT ON HONG KONG

1

.

THE ACTING SECRETARY FOR TRADE AND INDUSTRY (YUE) AND THE POLITICAL ADVISER SPOKE TO NONA ON 11 SEPTEMBER TO REGISTER OUR CONCERN AT THE DAMAGING EFFECTS ON HONG KONG IF THE PRELIMINARY HIT LIST PUBLISHED BY THE US ADMINISTRATION WAS IMPLEMENTED TO

THE FULL EXTENT.

2.

YUE SAID WE APPRECIATED THAT THE TRADE TALKS WAS A MATTER FOR

CHINA AND THE US TO RESOLVE. IT WAS NOT OUR INTENTION TO INTERFERE. BUT SHOULD THE TALKS BREAK DOWN AND THERE BE RETALIATION AND COUNTER-RETALIATION, THERE WOULD BE SERIOUS ECONOMIC CONSEQUENCES FOR HONG KONG, BOTH IN TERMS OF IMMEDIATE TRADE AND IN TERMS OF FUTURE INVESTMENT. WE HOPED THE CHINESE

AUTHORITIES WOULD TAKE FULL INTO ACCOUNT HONG KONG'S INTEREST. WE HAD MADE THE SAME POINT TO THE US CONSUL-GENERAL THIS

MORNING.

3.

YUE HANDED OVER THE SUMMARY OF OUR ASSESSMENT OF THE LIKELY

IMPACT ON HONG KONG'S ECONOMY SHOULD THE US IMPLEMENT THEIR

PUBLISHED PRELIMINARY HIT-LIST.

4.

CHEN RONGCHUN, HEAD OF THE FOREIGN AFFAIRS DEPARTMENT OF NCNA, SAID THAT THE CHINESE AUTHORITIES UNDERSTOOD HONG KONG'S CONCERN AND WOULD TAKE THEM INTO ACCOUNT. HOWEVER, HE NOTED THAT SECTION 301 TALKS WERE IMPOSED ON CHINA BY THE US AND THAT AS A SOVEREIGN STATE, CHINA HAD TO CONSIDER COUNTER RETALIATORY ACTION IF THE US WENT AHEAD WITH THEIR LIST. HE STRESSED THAT CHINA

WANTED TO CONCLUDE A MUTUALLY ACCEPTABLE AGREEMENT WITH THE US BEFORE 10 OCTOBER.

CHEN WAS ACCOMPANIED BY THE HEAD OF THE ECONOMIC AFFAIRS DEPARTMENT OF NCNA, CHEN KEQIANG.

5.

PATTEN

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