CONFIDENTIAL
or 00
MDLOAN 9919
TRANSITION PERIOD. THE US WISHES TO HELP MAINTAIN CONFIDENCE AND
PROSPERITY IN HONG KONG. THIS WAS AN IMPORTANT CONSIDERATION IN
THE DECISION TO CONTINUE MFN FOR CHINA AND TO RESOLVE THE TRADE
DISPUTES.
- CONSISTENT WITH ITS GLOBAL POLICY, THE US SUPPORTS DEMOCRACY IN
HONG KONG. THE US BELIEVE THAT INCREASED DEMOCRACY WOULD BE ENTIRELY CONSISTENT WITH THE JOINT DECLARATION AND THE BASIC LAW.
YOU HAVE PROPOSED A CONSTRUCTIVE APPROACH TO THIS GOAL. US HOPE THE CHINESE SIDE WILL GIVE IT CAREFUL ATTENTION. THEY WERE PLEASED THAT YOU AND THE CHINESE SIDE KEPT THE DOOR OPEN FOR FURTHER TALKS. THE US HOPES THAT CHINA WILL CONTINUE THE DIALOGUE WITH YOU: YOU ARE IN THE BEST POSITION TO MAKE AN AGREEMENT STICK. - GIVEN THE INTEREST OF CONGRESS IN HONG KONG, THERE IS A DANGER THAT ADVERSE DEVELOPMENTS THERE COULD SPILL OVER TO AFFECT US/CHINA RELATIONS, PARTICULARLY IF THE DEMOCRACY ISSUE IS NOT HANDLED WITH CARE.
4. THE US EMBASSY HAVE INVITED US TO LET THEM HAVE ANY POINTS WHICH WE OR YOU WOULD FIND IT USEFUL FOR CLARK TO MAKE TO LU PING.
5. THE CONSULATE-GENERAL'S POINTS STRIKE US AS A WELL INTENTIONED EFFORT TO BE HELPFUL. BUT SOME OF THEM WILL ONLY SERVE TO REINFORCE CHINESE PARANOIA ABOUT US INTERFERENCE. SUBJECT TO YOUR VIEWS, WE WOULD PROPOSE TO GO BACK TO THE US EMBASSY TO SAY: WE ARE GRATEFUL FOR THE OFFER TO TAKE ON BOARD ANY POINTS FROM THE BRITISH SIDE IN ADVANCE OF LU PING'S CALL ON CLARK.
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GIVEN CHINESE EXTREME SENSITIVITY ABOUT WHAT THEY REGARD AS INTERFERENCE IN THE HONG KONG ISSUE, WE THINK IT IMPORTANT THAT THERE SHOULD BE NO SUGGESTION THAT WE OR YOU HAVE ASKED THE US TO MAKE ANY POINTS TO LU PING.
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THE US MAY ALSO WISH TO TAILOR THEIR OWN POINTS TO AVOID ANY
SUGGESTION OF TELLING THE CHINESE HOW TO CONDUCT THEIR RELATIONS
WITH BRITAIN OVER HONG KONG.
- THE MOST EFFECTIVE POINTS WHICH THE ADMINISTRATION COULD PUT ACROSS TO LU PING ARE THOSE WHICH DERIVE FROM THE US'S POSITION AS A MAJOR INVESTOR AND TRADE PARTNER WITH HONG KONG AND CHINA. THE MESSAGE IS ESSENTIALLY THE ONE IN YOUR POLICY ADDRESS, IE THAT RESPONDING TO THE WISHES OF THE HONG KONG PEOPLE FOR MORE DEMOCRACY IS AN ESSENTIAL INGREDIENT IN MAINTAINING CONFIDENCE IN HONG KONG, AND HENCE ITS ATTRACTIVENESS TO US FIRMS AND CAPITAL.
6.
GRATEFUL TO KNOW WHETHER THERE ARE ANY OTHER COMMENTS WHICH
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