TNAG-2469-FCO40-3593-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 142

mfn.SAkr

November 1992

Private Secretary

No 10 Downing Street

CONFIDENTIAL

CHINA/HONG KONG : MFN STATUS

In your letter of 21 November recording the Prime Minister's talk with Ambassador Seitz, you asked for views on the suggestion that Chinese treatment of Hong Kong might be listed

as one of the conditions for MFN renewal.

We agree with you that the disadvantages of this would be much greater than any possible advantage:

our aim is to avoid any conditions being attached to the renewal of MFN for China, or at least to ensure that any conditions are ones which China has some chance of meeting;

the Governor's proposals on democracy in Hong Kong are popular in Congress (although some Congressmen probably feel that he could have gone further). There would be plenty of Congressional support for making a favourable Chinese response to these proposals another condition for renewal of MFN;

CONFIDENTIAL