TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 272

23

CONFIDENTIAL

Math 091

161527 MDHIAN 9598

RECE

TRY

17 FEB 1993

INC

CONFIDENTIAL

FM WASHINGTON

TO IMMEDIATE FCO

TELNO 314

OF 122319Z FEBRUARY 93

INFO IMMEDIATE HONG KONG, PEKING, ACTOR

CHINA/MFN/HONG KONG

1.

AS WE ARE CONTINUING TO GET INDICATIONS FROM SENIOR ADMINISTRATION FIGURES THAT CLINTON WILL WANT TO ATTACH CONDITIONS TO THE RENEWAL OF MFN FOR CHINA, I RAISED THIS AGAIN WITH LAKE (NSC). I SAID THAT WE WOULD LIKE TO SEE MFN FOR CHINA RENEWED UNCONDITIONALLY. LAKE SAID THAT THIS WAS NOT A STARTER. CLINTON HAD MADE CLEAR DURING THE ELECTION CAMPAIGN THAT HE WOULD INSIST ON CONDITIONAL RENEWAL.

I SAID THAT I HOPED THAT ANY STATEMENTS ABOUT CHINA AND MEN WOULD MAKE CLEAR FROM THE OUTSET THAT HONG KONG WOULD BE PROTECTED.

2.

I EMPHASISED THE IMPORTANCE TO HONG KONG NOT ONLY OF EXPORTS BUT ALSO RE-EXPORTS.

3

LAKE SAID THAT THE U.S. ADMINISTRATION SUPPORTED MR PATTEN'S REFORMS AND ACCEPTED THE NEED TO HELP HONG KONG. BUT THE CHINESE WERE NOW RUNNING AN 18 BILLION DOLLAR TRADE SURPLUS WITH THE UNITED STATES AND PRESIDENT CLINTON WAS DETERMINED TO USE THAT TO INCREASE THE PRESSURE ON THEM OVER HUMAN RIGHTS.

I SAID THAT THIS WOULD NEED TO BE DISCUSSED WITH THE PRIME MINISTER ON 24 FEBRUARY.

b.

RENWICK

YYYY

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.MFN AND HONG KONG HKD

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