TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 95

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164650 MDTTAN 5552

ENOUGH ATTENTION TO HUMAN RIGHTS AND DEMOCRACY AROUND THE WORLD - A TRADITIONAL DEMOCRATIC THEME. IN A RECENT INTERVIEW HE SAID QUOTE WE HAD A VERY TEPID RESPONSE TO TIANANMEN SQUARE, AND THEN RESTORED MOST FAVOURED NATION STATUS WITHOUT REQUIRING ANY MEANINGFUL CONCESSIONS ON HUMAN RIGHTS IN CHINA UNQUOTE. HE ALSO WANTS TO SECURE THE SUPPORT OF AS MANY DEMOCRATS IN CONGRESS AS POSSIBLE AND, AS YOU KNOW, THERE IS CONSIDERABLE OPPOSITION THERE TO MFN STATUS FOR CHINA.

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NONE OF THIS MEANS TO SAY THAT A CLINTON ADMINISTRATION WOULD REALLY SCRAP MEN STATUS, ALTHOUGH THEY WOULD ALMOST CERTAINLY BE TOUGHER ON HUMAN RIGHTS AND DEMOCRACY IN CHINA THAN THE BUSH ADMINISTRATION AND USE THE THREAT OF WITHDRAWING MFN MORE OPENLY. WE WILL CONTINUE TO EXPLAIN THE PROBLEMS FOR HONG KONG, STRESSING IN PARTICULAR THE DANGERS FOR CONFIDENCE IF CLINTON LOOKS LIKELY TO WIN, AND PRESS CLINTON TO MODERATE HIS POSITION. WE WILL REPORT REACTIONS BY TELEGRAM.

5. PLEASE BRING THIS REPLY TO RICHARD GOZNEY'S ATTENTION IN

RESPONSE TO HIS LETTER OF 31 JULY.

SIGNED JN POWELL

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