UNCLASSIFIED
117077
MDHIAN 2795
REGION AND TO THE PEOPLE OF AMERICA. HONG KONG ITSELF IS A CATALYST OF DEMOCRATIC VALUES AND THE U.S. STRONGLY SUPPORT GOVERNOR PATTEN'S EFFORTS TO BROADEN DEMOCRATIC RIGHTS.
5. HE SAID THE ISSUE NOW WAS HOW TO CULTIVATE THESE DEVELOPMENTS, WHILE EXPRESSING DISAPPROVAL AT THE REPRESSIVE POLICIES. THE CORE OF U.S POLICY WOULD BE INSISTENCE OF SIGNIFICANT PROGRESS OVER HUMAN RIGHTS. WHETHER HE EXTENDED MFN NEXT YEAR WOULD DEPEND ON CHINA'S RECORD HERE.
6. SEPARATELY, LORD SAID THE AMERICANS HAD MADE PROGRESS RECENTLY IN QUIET NEGOTIATIONS. THE RESULTS WERE NOT DRAMATIC, BUT NOT INCONSEQUENTIAL. THE CHINESE HAD RELEASED PROMINENT POLITICAL DISSIDENTS, AND SEVERAL RELIGIOUS FIGURES. THEY HAD SIGNED THE CHEMICAL WARFARE CONVENTION. THEY HAD BOUGHT OVER 2 BILLION DOLLARS WORTH OF U.S. PRODUCTS AND TAKEN STEPS TO OPEN THEIR MARKETS. PEACE CORPS VOLUNTEERS WERE BEING ADMITTED FOR THE FIRST TIME. CHINA HAD BEEN HELPFUL OVER MIAS IN VIETNAM, AND IN REGIONAL ISSUES, ESPECIALLY KOREA AND CAMBODIA.
7. BUT PEKING HAD NOT MOVED SUFFICIENTLY ON THE U.S. CORE CONCERNS. HENCE THE EXECUTIVE ORDER, WHICH WAS THE FIRST TIME ANY ADMINISTRATION HAD CONDITIONED MFN FOR CHINA. IT WOULD BE A POWERFUL SIGNAL. THE CONDITIONS WERE CREDIBLE, MEANINGFUL, AND ACHIEVABLE OVER THE NEXT YEAR. THE U.S. DID NOT WANT TO LOSE OR REVOKE MFN IF AT ALL POSSIBLE. THIS WOULD HURT THE WRONG PEOPLE IN CHINA: IT WOULD HURT HONG KONG, AS THE GOVERNOR HAD MADE AMPLY CLEAR IN HIS RECENT VISIT, AS WELL AS TAIWAN AND MANY AMERICAN BUSINESS INTERESTS.
8.
ON TRADE AND NON PROLIFERATION, LORD SAID THE ADMINISTRATION WOULD USE THE OTHER INSTRUMENTS AT THEIR DISPOSAL LEGISLATION ON MISSILE SANCTIONS, COCOM, 301 NEGOTIATIONS ON TRADE, OR GATT EXCISION. THE AMERICANS WERE NOT RAISING NEW DEMANDS HERE: THEY WERE ASKING THE CHINESE TO LIVE UP TO AGREEMENTS ALREADY ENTERED INTO.
9.
LORD WAS PRESSED ON WHAT THE PRESS SAW AS LACK OF SPECIFICITY IN THE CONDITIONS, AND THE CONSIDERABLE FLEXIBILITY LEFT TO THE PRESIDENT IN DETERMINING WHETHER THE CHINESE HAD MADE ADEQUATE PROGRESS IN 1994. HE SAID THE ADMINISTRATION WERE TRYING TO STRIKE A BALANCE BETWEEN FIRM AND CREDIBLE GOALS, BUT ONES WHICH THE CHINESE HAD A REALISTIC CHANCE OF MEETING OVER THE NEXT YEAR. THE AMERICANS WOULD BE VERY FIRM IN THEIR JUDGEMENTS IN 1994, BUT WERE
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