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Committee. A meeting between the Secretary of
State and Qian in Europe in May would be useful
to maintain a broader dialogue with China even if
detailed talks on Hong Kong issues are
proceeding.
Maintain the policy of discreet
internationalisation. High profile intervention by President Clinton or Congress, particularly if it dragged in MFN, would be a distinctly mixed
blessing. But the Governor's visit to Washington
in May will be a timely reminder to Peking of the US dimension, even if statements of support are low-key. We should also keep Japan, Australia, Canada and EC partners briefed. China is well
aware of the need for a benign international image if she is to secure the 2000 Olympics, and
would not want the GATT process even further
delayed. None of these levers can be relied on
to induce a rational Chinese response on a sovereignty-charged issue like Hong Kong. they have some cumulative impact.
But
Consider the scope for unilateral action where
this is essential to maintain Hong Kong's
stability/prosperity. If China seeks to delay economic development by holding up land-grants, contracts etc, HKG will need to weigh up in each case whether it has the option of unilateral
action (eg by paying for infrastructure
development out of its reserves, rather than
seeking financing which will inevitably entail
post-1997 obligations). It is difficult to lay
down general principles, but relevant factors will be affordability and whether there would be
HongKong issuesahead/BRIEFS/NJH
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