TNAG-2608-FCO40-3799-International-support-from-the-USA-regarding-the-future-of-H-1992 — Page 103

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MDHIAN 9189

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FM WASHINGTON

TO IMMEDIATE FCO

TELNO 732

OF 030001Z APRIL 92

5 & APY

Q LIST?

FFICER

TA

INFO IMMEDIATE HONG KONG, JLG HONG KONG, PEKING, ACTOR

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US/HONG KONG: SENATE HEARING: THE MCCONNELL BILL

SUMMARY

1

BILL.

SENATE COMMITTEE HEARING ON HONG KONG FOCUSSES ON THE MCCONNELL

LITTLE SUPPORT FOR THE BILL IN ITS PRESENT FORM. BOTH ADMINISTRATION AND INDEPENDENT WITNESSES EXPRESS RESERVATIONS ABOUT THE REPORTING REQUIREMENT. ADMINISTRATION TELL US THAT MCCONNELL

IS PREPARED TO AMEND IT.

DETAIL

2. ON 2 APRIL THE SENATE FOREIGN RELATIONS COMMITTEE HELD A

HEARING ON US POLICY TOWARDS HONG KONG. MUCH OF THE HEARING FOCUSSED ON THE MCCONNELL BILL.

3. SOLOMON (STATE) SAID THE ADMINISTRATION SUPPORTED THE GOALS OF THE BILL, AND WELCOMED CONGRESS'S INTEREST IN HONG KONG. HONG KONG SEEMED TO HAVE RECOVERED ITS CONFIDENCE DESPITE TIANAMEN, AND WAS ENJOYING RENEWED GROWTH. HE WELCOMED THE NEW BILL OF RIGHTS, AND THE FACT THAT HONG KONG WAS REVIEWING ITS LAWS TO ENSURE THAT THEY CONFORMED TO INTERNATONAL HUMAN RIGHTS STANDARDS. THE INTRODUCTION OF DIRECT ELECTIONS LAST SEPTEMBER WAS AN IMPORTANT STEP IN PROMOTING DEMOCRACY.

4.

SOLOMON SAID CHINA HAD A CONSIDERABLE STAKE IN HONG KONG'S SUCCESS. IT WAS THE LARGEST FOREIGN INVESTOR IN HONG KONG, AND HONG KONG WAS THE LARGEST SOURCE OF FOREIGN INVESTMENT IN CHINA. THE ECONOMIC INTEGRATION OF SOUTH CHINA AND HONG KONG HAD BEEN THE KEY TO THE SUCCESS OF THE SOUTH CHINA ECONOMIC ZONES. AFTER 1997, THE WORLD WOULD CONTINUE TO TRADE WITH CHINA THROUGH HONG KONG. ALL THIS SHOULD GIVE CHINA AN INSENTIVE TO ABIDE BY THE JD.

5.

SOLOMON SAID THE US VIEWED WITH CONCERN CHINA'S CRITICISM OF HONG KONG'S BILL OF RIGHTS. A SUCCESSFUL TRANSITION TO CHINESE SOVEREIGNTY MUST SAFEGUARD HUMAN RIGHTS. HE EXPRESSED CONCERN,

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