TNAG-2469-FCO40-3593-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 31

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4.

(c)

It would be prudent, whatever line is eventually decided for public use, to tip the wink to someone

the Chinese trust in Hong Kong that the real

objective is unconditional renewal of MFN.

It would help to draw the threads together if, in

parallel to briefing No 10, we should telegraph our

conclusions. I submit a draft telegram.

5. Two further points which have emerged from the

correspondence are that the Governor is concerned that, despite our attempts to put them right, the Americans may

still believe that he would like MFN renewal linked to Chinese

agreement to his constitutional proposals. He is opposed to

any attempts, well intentioned or otherwise, to link Hong Kong

to the renewal of MFN status. A second, related point is

that, while the Secretary of State agrees that there should be

no direct linkage, he does not think we should discourage the

Americans from using trade as a means of placing pressure on

China. The draft telegram seeks to clarify these points.

Thomin

J C Morris

hk.chn.ADM

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