TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 315

14 January 1993

1 Mc Rett

1.) PA (B).

1. Mr Whyh

1THIS 158/1

MAN3_.091/1

for into

British Embassy

Washington

Y

RECI

T Furness Esq.

22 JAN 1993

Hong Kong Department

3100 Massachusetts Ave N.W.

FCO

INDLY

@

Washington D.C. 20008-3600

Telephone: (202)

-Pekmezi 1427 or 216760-WUI 64224

Facsimile: (202)

Helery,

US/HONG KONG

1. On 8 January Commerce Secretary, Barbara Franklin, gave a talk about a recent trip to China and Hong Kong to a Washington International Trade Association luncheon.

2.

Ms Franklin highlighted the importance of supporting unconditional MFN. This was the message she got from business people in China and Hong Kong. She said that free markets could bring Washington and Beijing together, even if there were other differences. She hoped President Clinton would continue the policy of engagement with China.

3.

On Hong Kong, Franklin said that she believed that Britain and China, while taking into account the aspirations and needs of the Hong Kong people, must come together to work out their differences satisfactorily. This was essential if Hong Kong's prosperity was to continue after 1997. One issue of immediate concern was the recent Chinese statements placing in doubt the continuity of Hong Kong Government contracts after 1997. Franklin stressed as she had in China and Hong Kong - that if China was to become a full member of the World Economic Community then their leaders needed to realise that contracts must be respected. The US would do all it could to protect the interests of American businesses, including the continuity of contracts in Hong Kong.

4.

Ms Franklin said she had a friendly and frank meeting with Governor Patten. This included MFN, which she said the Governor supported without conditions. Franklin said that she had told the Governor that the US supported democracy everywhere, including in Hong Kong. She did not intend to comment publicly in any way on his democracy proposals.

5.

Franklin said she had also pressed the Governor on textile transhipment, and the Governor had promised additional enforcement efforts.

Ys

sty

SD Pattison

c.c. S Bradley Esq., Deputy Political Adviser, Hong Kong

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