TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 157

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TELNO 662

OF 281735Z APRIL 93

INFO PRIORITY WASHINGTON, PEKING

015112

MDLIAN 9738

63.

US/CHINA RELATIONS: CONVERSATION WITH US AMBASSADOR TO PEKING

1. I HAD DINNER ON 27 APRIL WITH STAPLETON ROY, DURING WHICH HE GAVE ME THE BENEFIT OF SOME OF HIS STRONG AND OBVIOUSLY VERY WELL INFORMED VIEWS ON CHINA AND US/CHINA RELATIONS.

2. ROY IS CLEARLY OF THE OPINION THAT CHINA IS MOVING IN THE RIGHT DIRECTION AND THE US SHOULD NOT BE TRYING TO HOLD UP THAT PROGRESS BY E.G. WITHDRAWING MFN. HE DISPLAYED IMPATIENCE WITH THE VIEW THAT IT WOULD NOT/NOT BE IN AMERICA'S INTERESTS TO HAVE A PROSPEROUS BUT UNREFORMED CHINA. HE ARGUED THAT THE ONLY QUESTION WAS WHETHER CHINA WAS FRIENDLY OR NOT, AND SAID THAT IT WAS THE FUNCTION OF DIPLOMACY TO ENSURE CHINA WAS FRIENDLY. FROM THE VIGOUR OF HIS CRITICISM I SUSPECT THAT THIS IS AN ISSUE HE IS CURRENTLY ARGUING WITH SOME AT LEAST IN WASHINGTON.

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3. ON MFN, HE ADVISED ME TO MAKE THREE POINTS WHEN IN THE US. FIRSTLY, TO DRAW ATTENTION TO THE DAMAGE THAT WITHDRAWAL WOULD DO TO HONG KONG'S ECONOMY. SECONDLY TO URGE THAT HONG KONG NOT BE DRAWN INTO MFN AS SOME KIND OF CONDITION. FINALLY A USEFUL GENERAL POINT TO ARGUE THAT GOOD AND IMPROVING US/CHINA RELATIONS OVERALL WOULD CONTRIBUTE POSITIVELY TO THE PROSPECTS FOR A SMOOTH AND SUCCESSFUL TRANSITION IN 1997.

4. ON THE BROADER QUESTION OF US INTERESTS IN THIS REGION, ROY CONTENDED THAT THE REAL STRATEGIC PROBLEMS FOR BOTH CHINA AND THE US LAY NOT WITH EACH OTHER, BUT WITH JAPAN (THOUGH I SUSPECT HIS COLLEAGUE IN TOKYO MIGHT ARGUE THE INVERSE OF THIS).

5. ROY WAS SUPPORTIVE OF WHAT WE ARE DOING IN HONG KONG, THOUGH HIS REASON FOR BEING SO WAS RATHER CURIOUS. HE BELIEVED IT WAS NECESSARY FOR THE BRITISH, AS HE PUT IT, TO MAKE A FURTHER POLITICAL EFFORT, POST-TIANANMEN, TO DEMONSTRATE THAT WE HAD DONE EVERYTHING POSSIBLE TO OBTAIN THE BEST DEAL AVAILABLE FOR THE PEOPLE OF HONG KONG. I EXPLAINED OUR VIEW OF WHAT WE WERE TRYING TO DO ON THE CONSTITUTIONAL FRONT, AND OUR SLIGHT SURPRISE AT THE

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