TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 253

CONFIDENTIAL

FM WASHINGTON

TO IMMEDIATE FCO

TELNO 393

OF 23003OZ FEBRUARY 93

CONFIDENTIAL

HUB 0911 нив

REC

*RY

2 4 FEB 1993

INC

003346

MDHIAN 0622

Пт Now file

INFO IMMEDIATE UKMIS NEW YORK, PARIS, BONN, UKREP BRUSSELS, INFO IMMEDIATE UKDEL NATO, MOSCOW, ACTOR

CLINTON AND HIS ADMINISTRATION

SUMMARY

1. THE ADMINISTRATION GOING THROUGH THE USUAL TRANSITION PAINS. AN IMPRESSIVE STATE OF THE UNION MESSAGE. CLINTON IS MAKING A SERIOUS EFFORT TO TACKLE THE DEFICIT AND HEALTH CARE. DIFFICULTIES AHEAD WITH CONGRESS. PORTRAIT OF THE PRESIDENT. FOREIGN POLICY CONTINUITY. ACTIVISM OVER YUGOSLAVIA. TENSIONS OVER TRADE AND THE

GATT.

DETAIL

2.

THE CLINTON ADMINISTRATION IS JUST ONE MONTH OLD. IT HAS BEEN GETTING QUITE A BUMPY RIDE IN THE PRESS, SOME OF IT DESERVED. TACKLING GENERAL POWELL AND THE JOINT CHIEFS ON THE ISSUE OF HOMOSEXUALS IN THE MILITARY WAS NEVER LIKELY TO BE A POPULAR CAUSE. THE PROBLEMS OVER THE APPOINTMENT OF A NEW ATTORNEY-GENERAL ALSO WERE SELF-INFLICTED. MANY SENIOR POSITIONS REMAIN UNFILLED. IN THE PENTAGON, ONLY ASPIN AND HIS DEPUTY ARE CONFIRMED. THE SAME IS TRUE IN THE STATE DEPARTMENT. IT WILL TAKE UNTIL THE MIDDLE OF THE YEAR BEFORE MANY OF THE NEW TEAM ARE IN PLACE.

3. BUT THERE ARE KEY AREAS IN WHICH THE NEW ADMINISTRATION HAS GOT OFF TO A SOLID START. LLOYD BENTSEN, ALTMAN AND SUMMERS ARE A MORE IMPRESSIVE TREASURY TEAM THAN THEIR PREDECESSORS. IN FOREIGN AND NATIONAL SECURITY POLICY WE ARE DEALING WITH FAMILIAR FIGURES, WHO ARE SETTING ABOUT THEIR TASK IN A SERIOUS WAY. WE HAVE BEEN ABLE TO EXERT REAL INFLUENCE ON THE NEW ADMINISTRATION'S POLICY ON YUGOSLAVIA AND TO GET THE PRESIDENT TO MAKE CLEAR THAT THERE WILL BE NO TAX DISCRIMINATION AGAINST FOREIGN CORPORATIONS. PRESIDENT WANTS THE PRIME MINISTER'S VISIT TO BE A SUCCESS AND TO SHOW HOW CLOSE CONSULTATION WITH US REMAINS.

4. CLINTON DESERVES CONGRATULATING ON HIS STATE OF THE UNION ADDRESS, THOUGH THERE IS DOUBT WHETHER THE SHORT TERM STIMULUS REALLY IS NEEDED. THE U.S. ECONOMY ALREADY IS SET TO GROW AT ABOUT

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