TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 188

RESTRICTED

FM WASHINGTON

TO TELELETTER FCO

TELELETTER NFR

OF 02232OZ APRIL 93

RESTRICTED

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Cc.

TKB 091/1 жив

AND TO TELELETTER PEKING, HONG KONG RECEIVED IN REGISTRY

$3

133063

MDTTAN 9832

Governor

Sir J Coles

Hum

My Ricketts

FROM: S D PATTISON, WASHINGTON

14 APR 1993

DESK OFFICER

INDEX

PA

TO: J MORRIS ESQ., HONG KONG DERARTMENT FCO

CC:

CHANCERIES PEKING, HONG KONG

U.S./CHINA: MFN

·

I tis Dames Jones e par

An encouraging developpement ( and some good arguments).

ON 1 APRIL CONGRESSMAN HAMILTON, CHAIRMAN, FOREIGN AFFAIRS COMMITTEE, GAVE A SPEECH ON CHINA TO THE BUSINESS COALITION FOR U.S./CHINA TRADE.

2.

Ir 5/4

HE EMPHASISED THAT THE U.S. HAD A WIDE RANGE OF INTERESTS IN CHINA. THE STAKES WERE TOO HIGH FOR A CONFRONTATIONAL APPROACH. THE CHALLENGE FOR U.S. POLICY WAS TO TRY TO MOVE CHINA TOWARDS' ADHERENCE TO INTERNATIONAL NORMS OF BEHAVIOUR WHETHER IN TRADE, NON-PROLIFERATION OR HUMAN RIGHTS, AND TO BE A FORCE OF STABILITY IN EAST ASIA. THE U.S. HAD TO SEARCH FOR THE BEST INCENTIVES AND DISINCENTIVES TO SHAPE CHINA'S FUTURE.

3. ON MFN, HAMILTON SAID THAT U.S. POLICY TOWARDS CHINA WOULD ALWAYS BE CONDITIONAL: BILATERAL RELATIONS WOULD ADVANCE OR DECLINE DEPENDING ON WHETHER THE CHINESE GOVERNMENT ACTED IN WAYS THAT COINCIDED OR COLLIDED WITH U.S. INTERESTS. IT WAS NOT NECESSARY

TO LEGISLATE CONDITIONS FOR MEN. WITHDRAWAL OF MFN, OR THREATENING TO WITHDRAW IT UNLESS STATUTORY CONDITIONS WERE MET WOULD PROBABLY BE COUNTER-PRODUCTIVE. WITHDRAWAL WOULD HURT AMERICAN BUSINESSES, HONG KONG, EAST ASIAN STABILITY, A POST-DENG SUCCESSION THAT FAVOURED REFORM, AND LONG-TERM POLITICAL AND ECONOMIC FREEDOM IN CHINA. DEFTNESS AND FLEXIBILITY WERE REQUIRED. ACTING TOGETHER CONGRESS AND THE ADMINISTRATION COULD EXERT POWERFUL INFLUENCE ON CHINA.

HAMILTON SAID THAT IT WAS HIS VIEW THAT THE U.S. WOULD BE MORE LIKELY TO ACHIEVE ITS GOALS IN CHINA THROUGH STRONG DIPLOMATIC

1

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