TNAG-2608-FCO40-3799-International-support-from-the-USA-regarding-the-future-of-H-1992 — Page 116

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damage that non-renewal, or conditional renewal, of China's

MFN status would have on Hong Kong's economy. Congress voted on the issue on 25 February and sought to set

conditions for renewal. However, they failed to obtain the

two thirds majority vote necessary to override the expected

Presidential veto. The President needs to take a decision

on renewal by early June, and his veto of the congressional legislation is expected very soon. We continue to lobby both Congress and the Administration. Mr Baker has made

supportive comments on the importance of China's MFN status

for Hong Kong.

JH2ACX/2

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