TNAG-2469-FCO40-3593-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 34

CONFIDENTIAL

Mr Ricketts, HKD

139

CONFIDENTIAL

HUB calz

China/Hong Kong: MFN

The Secretary of State has seen your submission of 24 November. He believes, however, that the advice offered in the draft letter to PS/No 10 is rather too definite. He accepts that if Congress or the President were to impose definite Hong Kong-related conditions on the renewal of Chinese MFN status, Peking might well react adversely. However, he believes that we would presumably want Hong Kong to be mentioned in any US/China dialogue in the context of MFN. The Americans might take the line that if the Chinese clamped down on free institutions in Hong Kong in 1997, this would have a very damaging effect on the prospects for trade etc.

I

The Secretary of State believes that the draft letter needs further thought, including the Governor's views. have meanwhile sent a holding reply to PS/No 10.

30 November 1992

сс : PS

PS/Mr Goodlad

PS/Mr Lennox-Boyd PS/PUS

Sir J Coles

Mr Beamish

Mr Hum

Heads of: FED

Steph Smith.

(J S Smith)

ECD (E)

NAD

News Dept

Special Advisers

CONFIDENTIAL