RESTRICTED
FM WASHINGTON
TO TELELETTER FCO
RESTRICTED
A113 091/1
KEL
1. JAN 1393
©
046752
MDTTAN 4282
"RY
INL
TELELETTER NFR
OF 122325Z JANUARY 93
AND TO TELELETTER HONG KONG,
PEKING
Ni
13/1
√ FED)
Гори
ECO)(E) - China /GATT
7.
M
13/1
FROM: S D PATTISON, WASHINGTON
TO:
P RICKETTS ESQ., HKD, FCO
CC:
Mo Barnes-Jones
Mr Weaknem 1311
S BRADLEY ESQ. DEPUTY POLITICAL ADVISER, HONG KONG CHANCERY PEKING
Copy laben for
our pies. 15/1
HAST
U.S.
CHINA/MFN
1.
ON 7 JANUARY SENATOR BAUCUS (DEMOCRAT) DELIVERED A SPEECH ON
THE IMPORTANCE OF NOT INTERFERING WITH CHINA'S MEN STATUS TO AN
AUDIENCE OF BUSINESSMEN INTERESTED IN U.S./CHINA TRADE.
2.
.
BAUCUS ARGUED THAT WITHDRAWING MEN WOULD DO NO GOOD. PEKING WOULD RESPOND BY CUTTING OFF VIRTUALLY ALL U.S. EXPORTS TO CHINA. WITH MFN IN PLACE, THE U. S HAD BEEN ABLE TO ADDRESS CONCERNS CONSTRUCTIVELY: AN INTELLECTUAL PROPERTY RIGHTS AGREEMENT HAD BEEN SIGNED LAST JANUARY, A MARKET ACCESS AGREEMENT IN OCTOBER. THERE HAD ALSO BEEN AN AGREEMENT TO STOP CHINA'S EXPORT OF PRODUCTS MADE WITH PRISON LABOUR, AND SUCCESSFUL ATTEMPTS TO PERSUADE CHINA TO
SIGN THE NPT AND TO ABIDE BY THE MTCR. THESE WOULD NOT HAVE BEEN
POSSIBLE WITHOUT MEN. MFN HAD KEPT THE NECESSARY CHANNELS OF
COMMUNICATION OPEN.
3.
BAUCUS ARGUED THAT TRADE PROMOTED REFORM IN CHINA. WITH MFN
THE U.S. WAS TRADING IDEAS ALONG WITH GOODS. CUTTING OFF MFN WOULD HURT THE PROGRESSIVES MORE THAN THE HARDLINERS. IT WOULD
ALSO INJURE HONG KONG MORE THAN IT WOULD ANY CHINESE PROVINCE AT A
TIME WHEN WE NEEDED TO DO ALL WE COULD TO PROMOTE AND EXPAND
DEMOCRACY IN HONG KONG. IT WAS EASY FOR AMERICANS TO PONTIFICATE
ABOUT WHAT WAS BEST FOR CHINA. BUT THE PEOPLE OF HONG KONG HAD TO
LIVE WITH THE CONSEQUENCES.
4.
BAUCUS SAID THAT THE IMPOSITION OF CONDITIONS FOR MEN WOULD BE
JUST AS DAMAGING AS COMPLETE TERMINATION. THE CHINESE HARDLINERS
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