TNAG-2608-FCO40-3799-International-support-from-the-USA-regarding-the-future-of-H-1992 — Page 115

RESTRICTED

SIR J COLES' TALKS IN WASHINGTON ON ASIAN SUBJECTS

HONG KONG:

The McConnell Bill

Q

References A: Mr Ricketts' submission of 7 February

B: FCO Telno 157 to Washington

1.

11

13)

C: Washington Teleletter of 18 February

After a visit to Hong Kong last year, Senator McConnell

introduced a Bill designed to bolster Hong Kong's autonomy under the Joint Declaration. The Bill is well-intentioned,

and largely a reiteration of the JD. But it includes more

sensitive points, eg a provision for annual reports on JD implementation. The Chinese are suspicious that it is an

attempt to internationalise the Hong Kong problem.

Ambassador Ma saw Lord Caithness on 10 February and urged

HMG to speak out against it. The Embassy in Washington now

expect that the Bill will become law. But they warn that

such a public statement would be damaging with the

Administration. It would also expose us to the accusation

of kowtowing to the Chinese. We have therefore decided to

avoid high-profile lobbying on the Hill but quietly to let

the Administration and trusted congressional contacts know

of the points which concern us in the Bill. The Embassy has

this in hand.

China's MFN Status

HKD 041/2 8

Reference D: Washington telno 458

2. The US and China have recently resolved their

differences over Intellectual Property Rights (Special 301).

This is welcomed but we remain concerned about the severe

JH2ACX/1

SLM

RESTRICTED