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CONFIDENTIAL
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CONFIDENTIAL
FM WASHINGTON
TO TELELETTER FCO
TELELETTER NFR
OF 150001Z JANUARY 93
AND TO TELELETTER PEKING, HONG KONG
FROM: S D PATTISON, WASHINGTON
TO:
W MORRIS ESQ., FED, FCO
CC:
T FURNESS ESQ. HKD, FCO
·
CHANCERY PEKING
S BRADLEY ESQ., HONG KONG
on RF file plo.
15/1
U.S./CHINA
1
·
I HAVE SPOKEN RECENTLY TO STATE AND NSC ABOUT THE PROSPECTS FOR
U.S./CHINA RELATIONS, AND MFN. BOTH EXPRESSED CONCERNS ABOUT
CHINESE BEHAVIOUR ON TRADE ISSUES, AND ON MISSILE PROLIFERATION.
2. THE U.S./CHINA TRADE IMBALANCE WAS GROWING: NSC THOUGHT IT
MIGHT REACH DOLLARS 20 BILLION THIS YEAR. STATE POINTED OUT THAT
THE IMBALANCE WITH A QUOTE GREATER CHINA UNQUOTE (I.E. INCLUDING
HONG KONG AND TAIWAN) HAD REMAINED FAIRLY STABLE. BUT THE U.S.
WAS NOW IMPORTING MORE FROM THE PRC AT THE EXPENSE OF HONG KONG AND TAIWAN.
3. NSC SAID THAT THEY WERE PARTICULARLY WORRIED THAT THE CHINESE
WERE NOT MOVING FAST ENOUGH TO IMPLEMENT THE MARKET ACCESS AGREEMENT. THERE HAD BEEN NO PROGRESS IN OPENING THE CHINESE
SERVICES SECTOR. THERE WAS UNCERTAINTY ABOUT HOW QUICKLY THE CHINESE WOULD REMOVE CERTAIN TARIFFS. NSC SAID THAT, AGAINST THE BACKGROUND OF THE WORSENING TRADE IMBALANCE, IF CONGRESS THOUGHT THE CHINESE WERE DRAGGING THEIR FEET ON MARKET ACCESS, THE
PROSPECTS FOR MEN WOULD BE SERIOUSLY DAMAGED. NSC SAID THE ADMINISTRATION WAS MONITORING THE SITUATION CAREFULLY. THEY WOULD PRESS PEKING TO DO MORE, BUT KEEP THE IDEA OF TRADE SANCTIONS AT THE BACK OF THEIR MIND IN CASE THERE WAS NO PROGRESS.
4.
ON PROLIFERATION, BOTH STATE AND NSC SAID THEY WERE WATCHING THE SITUATION CAREFULLY. AS WE KNEW, ALTHOUGH THERE HAD SO FAR
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CONFIDENTIAL
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