TNAG-2469-FCO40-3593-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 49

The Ricketts (HKD) We spoke

From the Private Secretary

15/23/7

Dear Rishand

CONFIDENTIAL

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THE PRIME MINISTER'S MEETING WITH AMBASSADOR SEITZ'

20 NOVEMBER: CHINA/HONG KONG

SHAN

We kept Ray Seitz waiting a long time on Friday because he arrived in the middle of the tensest part of the telephone

round which led up to the conclusion of the GATT negotiation te

I have recorded all that separately.

News (perl) IM'A with (personal)

Special

Ray Seitz said that he had discussed China and Hong Kong with Chris Patten.

The Prime Minister gave an account of the meeting with Zhu Rongji who had been pretty hardline. There was no doubt that this was becoming the most serious row between Britain and China since Tiananmen Square. The Chinese tended to see the UK (and the US) as trying to subvert China. Some of our Sinologists were very cautious about the policy we were pursuing but Chris Patten could not have gone for anything less.

5 fox Rozor

236.

The Prime Minister said that in all this MFN was very important. If MFN status for China went, that would do huge damage to confidence in Hong Kong and would increase the risk of immigration. When Chris Patten next went to Washington it would be very helpful if he could see the new President briefly. The Prime Minister was sure they would get on well and it would be extremely useful if they met from Hong Kong's point of view.

Ray Seitz said that Chris Patten had mentioned to him that the Prime Minister might come forward with this idea. MFN status would come up again in May or June. President Bush had taken quite a lot of heat over China and Hong Kong. Chris Patten had suggested that while he could not promote the idea of internationalisation of Hong Kong, he would have no objection if Chinese treatment of Hong Kong was listed as one of the conditions for MFN renewal. That would, of course, imply that MFN status was to go ahead. The Prime Minister said he thought that putting Hong Kong on the list of MFN conditions could be pretty two-edged.

Follow-up

The Prime Minister would welcome your views on this idea. The advantages would be greater pressure on China; a boost to

CONFIDENTIAL