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2301
MDHIAN 9189
TOO, ABOUT CHINA'S MEDIA ATTACKS ON HONG KONG'S
DEMOCRATICALLY-ELECTED LEGCO MEMBERS, CHINA'S APPOINTMENT OF 44 PRO-PRC QUOTE ADVISERS UNQUOTE, AND SOME OF THE NCNA'S ACTIVITIES IN HONG KONG.
6.
SOLOMON SAID THE US HAD AN ENORMOUS ECONOMIC STAKE IN HONG
KONG'S FUTURE. HE NOTED THAT WITHDRAWAL OF MFN FOR CHINA WOULD SERIOUSLY DAMAGE HONG KONG. THE US HAD UNDERTAKEN A NUMBER OF STEPS TO BUILD CONFIDENCE IN HONG KONG, INCLUDING THE 1990 IMMIGRATION ACT. HE HOPED TO ANNOUNCE NEW REGULATIONS SOON TO FACILITATE THE EXPORT OF HIGH TECHNOLOGY TO HONG KONG.
7.
IT
THE ADMINISTRATION SUPPORTED THE GOAL OF MCCONNELL'S BILL. WAS IMPORTANT TO ENSURE A PROPER LEGAL FRAMEWORK TO ENABLE THE US TO CONTINUE RELATIONS WITH HONG KONG AFTER 1997. THE ADMINISTRATION RECOGNISED CONGRESS'S LEGITIMATE INTEREST IN DEVELOPMENTS IN HONG KONG AS THE TRANSITION PROGRESSED. THE ADMINISTRATION WOULD CLOSELY MONITOR ALL ASPECTS OF THE TRANSITION. THEY FULLY SUPPORTED THE JD, BUT HAD NO SPECIAL STANDING IN REGARD TO IT. STATES DID NOT USUALLY TAKE A POSITION ON BILATERAL AGREEMENTS TO WHICH THEY WERE NOT A PARTY. ANY REPORT TO CONGRESS SHOULD FOCUS ON US RELATIONS WITH HONG KONG AND CHANGES RESULTING FROM THE REVERSION TO CHINESE SOVEREIGNTY THAT MIGHT EFFECT US INTERESTS. THESE COULD GO BEYOND THE SCOPE OF THE JOINT DECLARATION.
8
THE FOUR NON-GOVERNMENT WITNESSES WERE EQUALLY CAUTIOUS ABOUT THE MCCONNELL BILL'S REPORTING REQUIREMENTS. OVERHOLT (GOVERNOR OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG) SAID HE DID NOT
THINK THAT AN ANNUAL REPORT WOULD SERVE EITHER US OR HONG KONG INTERESTS.
COMMENT
9.
THIS WAS A GOOD OUTCOME FROM OUR POINT OF VIEW. CONSIDERABLE SCEPTICISM WAS EXPRESSED ABOUT THE MCCONNELL BILL AS CURRENTLY DRAFTED, AND, IN PARTICULAR, ABOUT THE REPORTING REQUIREMENT. MCCONNEL WAS THE ONLY SENATOR TO SIT THROUGH THE WHOLE HEARING
AND THE ONLY ONE TO ASK QUESTIONS.
10.
IN THE RUN UP TO THE HEARING WE BRIEFED A NUMBER OF STAFFERS AND STATE ABOUT OUR THINKING ON THE BILL. STATE HAVE TOLD US - IN CONFIDENCE THAT MCCONNELL IS PREPARED TO RE-DRAFT HIS BILL AND IN PARTICULAR TO AMEND THE REPORTING REQUIREMENT PROBABLY ALONG THE
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