CONFIDENTIAL
ON-DRO
In parallel with deploying these points in the US, we will be working up with the Governor and Sir R Renwick ideas on how the Administration could give itself maximum flexibility on the issue, given that President Clinton would be unlikely to veto legislation imposing conditions on MFN for China. Possibilities include amendments to the legislation to minimise the damage to Hong Kong, or encouraging the Administration to use an Executive Order of the President rather than legislation in Congress. When and how to deploy our thoughts with the new Administration will need careful judgement.
I am copying this letter to Jeremy Heywood
(HM Treasury) Peter Smith (DTI) and Melanie Leech (Cabinet Office).
yours
ever
Stephen Smith
(J S Smith)
Private Secretary
J S Wall Esq
10 Downing Street
CONFIDENTIAL
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