TNAG-2469-FCO40-3593-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 186

CONFIDENTIAL

HAR 041/2

pa

In Wintney/Purusha)

033222

MDLIAN 3838

98

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2666

OF 09120OZ NOVEMBER 92

AND TO PRIORITY WASHINGTON

INFO ROUTINE PEKING, UKREP JLG HONG KONG

VISIT TO THE U.S.

1.

TOP COPY

Q DIST?

Mr Whicken

Thanks

I

I HAVE BEEN GIVING THOUGHT TO WHEN I MIGHT VISIT THE U.S. CONSIDER IT IMPORTANT THAT WHEN I DO I SHOULD CALL ON PRESIDENT CLINTON. THAT MIGHT HELP DEMONSTRATE TO CHINA THAT IT IS NOT IN ITS INTERESTS TO ROUGH UP A GOVERNOR WHO CAN CARRY SOME WEIGHT IN THE MFN DEBATE. IT WOULD ALSO HELP SHOW THE BUSINESS COMMUNITY HERE THAT THE U.S. IS PREPARED TO TAKE HONG KONG AND ITS COMMERCIAL INTERESTS SERIOUSLY IF ITS GOVERNOR HAS STOOD UP FOR

DEMOCRACY.

2. THE ADVICE OF THE EMBASSY AND THE HONG KONG OFFICE IS THAT I

SHOULD THINK OF A VISIT AFTER RATHER THAN BEFORE MR.CLINTON'S INAUGURATION. ALTHOUGH I AM PLANNING AN EXTENDED U.S. TOUR IN MAY, I THINK IT IMPORTANT THAT I SHOULD VISIT AT LEAST WASHINGTON AS SOON AS POSSIBLE AFTER THE INAUGURATION, BOTH TO MAKE HONG KONG'S CASE WITH THE ADMINISTRATION AND TO LOBBY ON THE HILL BEFORE RESOLUTIONS ON MEN START TO BE PUT TOGETHER. I WOULD BE GRATEFUL FOR THE AMBASSADOR'S VIEWS ON THIS.

3.

IT WOULD BE VERY HELPFUL IF, WHEN THEY MEET, THE PRIME MINISTER COULD URGE MR.CLINTON TO RECEIVE ME AS EARLY AS POSSIBLE

AFTER HIS INAUGURATION.

4. I NOTE THAT THE AMBASSADOR IS SEEING WINSTON LORD ON 17 NOVEMBER AND THAT THE QUESTION OF WITHDRAWING MFN STATUS IN RESPECT OF IMPORTS FROM CHINESE STATE-OWNED ENTERPRISES MIGHT COME UP. IF IT DOES, IT WOULD BE WORTH POINTING OUT HOW IMPOSSIBLE IT IS PRACTICALLY TO DISTINGUISH BETWEEN STATE- PRODUCED AND PRIVATELY-PRODUCED GOODS: FOR EXAMPLE THE STEEL FROM WHICH A BICYCLE IS MADE COMES FROM A STATE ENTERPRISE, BUT THE EXPORT BICYCLE THESE DAYS IS VERY LIKELY TO BE MADE BY A PRIVATELY OWNED OR JOINT VENTURE COMPANY. THE DETAILED ARGUMENTS ABOUT THE DAMAGE WHICH WOULD BE CAUSED TO THE HONG KONG ECONOMY

BY MFN WITHDRAWAL ARE WELL KNOWN TO THE EMBASSY.

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