BRIT EMB WASHINTON I
TUE 04 MAY 93 20:15
PG.08
CONFIDENTIAL
good.
They had done less well on prison labour issues. And the general markets access agreement was progressing very indeed.
very slowly The USTR were particularly scathing about this.
9. The Governor asked whether the business community in the U.S. was euphoric about the economic prospects in China and investment potential or whether they were simply cautiously optimistic. Joan Spero said that business attitudes fluctuated. They recognised that substantial economic changes were going on in China but, post 1989, they were rather more cautious
cautious in their predictions than might otherwise have been the case.
10.
The Governor said that he thought businessmen were right to be optimistic over the long-term economic prospects in China. But he was surprised that they dia not show greater anxiety over increasing inflation there. If this were combined with corruption and the political uncertainties that would be inevitable when Deng died, it seemed to him that the economic ride ahead could well be bumpier than some people expected.
11.
The Governor asked whether the Administration wished to see Executive-led or Congress-led conditions on MFN, if some form of conditioning was inevitable. Mr. Lord said that the public line was that the Administration had not yet formed a view on this. a matter of principle Presidents tended to prefer conditionality that was determined by the Executive. The Governor would, however, understand that it was not good timing for the Administration to out publicly in favour of Executive-led conditions in the immediate aftermath of the launching of the Pelosi-Mitchell bill.
12. The Governor went on to ask whether the Administration had gone into detail with the Chinese about any specific conditions that might be applied. Mr. Lord said that it had not. The Chinese would react negatively to the imposition of any conditions.
13. There was some discussion of whether some form of conditionality
ра made sense i.e. applying sanctions 10 enterprises rather than private concerns. Mr. Lord said that U.S. Treasury needed to undertake a study to see whether part. conditions were feasible. The Governor said he could not see h. this would work. In applying MFN admissibility criteria, how cou you distinguish between a bicycle made by a public corporation and one made by a private concern, possibly on contract to such a corporation.
14.
The Ambassador suggested that it would be helpful if, when announcing its eventual decision on MFN renewal, the Administration could mention that Hong Kong's interests had been taken fully into Chinese account in determining how the conditions should be framed. Lord said that the Administration could certainly do that.
Mr. wa't The
read this
Governor made the point that any overt linkage of MFN renewal to the right progress on constitutional issues in Hong Kong would not, however,
way is
No comments yet.
Private notes are available after approval.