CONFIDENTIAL
074442 MDHIA 4052
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ADMINISTRATION'S POLICY ON MFN. THEY HOPED THE CHINESE UNDERSTOOD THAT CLINTON COULD NOT SIMPLY CONTINUE THE BUSH ADMINISTRATION'S POLICY. THE CHINESE HAD SO FAR MADE NO RESPONSE.
5. WIEDEMANN SAID THAT THE ADMINISTRATION WAS BEING CAREFUL NOT TO GIVE THE IMPRESSION THAT MFN RENEWAL THIS YEAR COULD BE TAKEN FOR GRANTED. THE PRESIDENT WANTED TO WORK CLOSELY WITH CONGRESS. IN STRICT CONFIDENCE, WIEDEMANN TOLD US THAT HE PERSONALLY EXPECTED THAT THE PRESIDENT WOULD RENEW MEN THIS YEAR, BUT ATTACH CONDITIONS FOR RENEWAL THEREAFTER. HE WAS NOT SURE EXACTLY WHAT MECHANISM THE PRESIDENT WOULD USE FOR THIS: ONE POSSIBILITY WAS AN EXECUTIVE ORDER TO BE ISSUED AT THE SAME TIME AS THE DECISION TO RENEW MFN. THE KEY QUESTION FACING THE ADMINISTRATION WAS HOW TOUGH ANY CONDITIONS SHOULD BE. CHINESE BEHAVIOUR IN THE NEXT FEW MONTHS, AND THE EXTENT TO WHICH IT HELPED MEET CONGRESSIONAL CONCERNS WOULD BE A KEY FACTOR.
6.
WIEDEMANN SAID THAT HE THOUGHT CONGRESS WOULD BE HAPPY TO LET THE ADMINISTRATION MAKE THE RUNNING. CONGRESSWOMAN PELOSI PLANNED TO INTRODUCE LEGISLATION SIMILAR TO LAST YEAR'S AFTER WINSTON LORD'S CONFIRMATION (NOW DUE IN EARLY APRIL). BUT SHE WOULD BE CONTENT TO POSTPONE ANY FURTHER ACTION (I.E. HEARINGS) UNTIL THE ADMINISTRATION HAD WORKED OUT ITS TACTICS.
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WIEDEMANN ADDED THAT HE FEARED THAT CONGRESS WOULD SEIZE ON PEKING'S RESPONSE TO THE GOVERNOR'S DEMOCRACY PROPOSALS AS AN ADDITIONAL REASON FOR GETTING TOUGH WITH CHINA ON MFN. WE EXPLAINED THAT WE HOPED THAT THE TWO ISSUES COULD BE KEPT SEPARATE: WE APPRECIATED U.S. SUPPORT FOR THE GOVERNOR'S PROPOSALS, BUT WE WOULD NOT WANT THIS TO CUT ACROSS OUR WISH TO SEE MFN CONTINUED.
MEYER
YYYY
ΜΑΙΝ
146
FED
UND
LEGAL ADVISERS
PUSD
DISTRIBUTION
157
SEAD
PS
PS/BARONESS CHALKER
PS/MR GOODLAD
PAGE
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CONFIDENTIAL
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