TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 19

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 841

OF 251035Z MAY 93

AND TO IMMEDIATE WASHINGTON

HKB 091/1

RECEIVED IN SEGISTRY

27 MAY 1003

DESK OFFICER

INDEX

PA

REGISTRY

انا اناشد

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

103

103470

MDHIAN 2097

MIPT: CHINA/MFN: LINE TO TAKE ON CONDITIONAL MEN.

1.

WELCOME THE US ADMINISTRATION'S DECISION TO RENEW CHINA'S MFN STATUS FOR ANOTHER YEAR (3 JULY 1993 TO 3 JULY 1994). THIS WILL AT LEAST ENSURE THAT TRADE WILL CONTINUE ON THE PRESENT TARIFF BASIS FOR A FURTHER YEAR.

2. NATURALLY DISAPPOINTED THAT THE US ADMINISTRATION HAS SET CONDITIONS ON ITS DECISION WHETHER OR NOT TO RENEW CHINA'S MFN STATUS NEXT YEAR (FOR THE PERIOD 3 JULY 1994 TO 3 JULY 1995).

3. AS THE GOVERNOR HAS ARGUED CONSISTENTLY, CONTINUE TO BELIEVE THAT UNCONDITIONAL RENEWAL IS BEST FOR HONG KONG.

6.

(4.

(5.

PLEASED THAT CONDITIONS WILL BE SET BY EXECUTIVE ORDER RATHER THAN BY LEGISLATION, WHICH WILL GIVE THE US ADMINISTRATION GRATER FLEXIBILITY IN DETERMINING CHINA'S PERFORMANCE IN 1994).

WE NOTE THAT THE ANNOUNCEMENT HAS REFERRED TO SEVERAL POSITIVE ELEMENTS AND THAT THE US ADMINISTRATION HAS LEFT THE DOOR OPEN FOR CONTINUED DIALOGUE WITH CHINA TO ENABLE BOTH SIDES TO WORK TOWARDS AN EARLY RESOLUTION OF THE OUTSTANDING ISSUES).

OUR SINCERE HOPE IS THAT DESPITE THE ANNOUNCED CONDITIONS, CHINA'S MFN STATUS WILL BE RENEWED AGAIN NEXT YEAR.

7.

WE WILL CONTINUE TO UNDERLINE IN OUR CONTACTS WITH THE US AND CHINA THAT MEN RENEWAL IS CRUCIAL FOR HONG KONG'S ECONOMIC WELL BEING. ONE OF THE MOST IMPORTANT FACTORS FOR HONG KONG'S LONG-TERM SUCCESS IS A GOOD RELATIONSHIP BETWEEN THE US AND CHINA

OUR TWO LARGEST TRADING PARTNERS.

8.

WE BELIEVE IN FREE NOT MANAGED TRADE AND WE HOPE THAT THE US

1

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