TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 331

CONFIDENTIAL

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MDHIAN 5672

TRADE SURPLUS WITH THE UNITED STATES.

4. I STRESSED THE IMPORTANCE OF DOING NOTHING TO IMPEDE THE GOVERNOR'S PROPOSALS ON DEMOCRACY IN HONG KONG. LAKE SAID THAT CLINTON STRONGLY SUPPORTED THESE. LAKE ACCEPTED THAT WHATEVER WAS ENVISAGED VIS-A-VIS CHINA OVER MFN MUST BE DEVISED IN SUCH A WAY AS NOT TO IMPACT NEGATIVELY ON HONG KONG. HE AGREED ON THE NEED FOR CLOSE CONSULTATION WITH US OVER THIS, THOUGH THIS SHOULD BE REASONABLY DISCREET.

ARAB/ISRAEL

5. LAKE ASSURED ME THAT THE CLINTON ADMINISTRATION WOULD BE JUST AS COMMITTED TO THE PEACE PROCESS. I ASKED IF THEY INTENDED TO APPOINT A SENIOR NEGOTIATOR EG TOM PICKERING. LAKE SAID THAT HE PERSONALLY FAVOURED THIS THOUGH A DECISION ON WHO SHOULD DO IT HAD NOT YET BEEN MADE. I EMPHASISED THE IMPORTANCE OF SHOWING THE PERSONAL INVOLVEMENT OF THE PRESIDENT AND SECRETARY OF STATE. LAKE SAID THAT HE AGREED AND WOULD PUT THIS TO CLINTON.

SOUTH AFRICA

IN

6.

LAKE ASKED ME ABOUT SOUTH AFRICA (THE BLACK CAUCUS HAVE INVITED MANDELA TO THE INAUGURAL CELEBRATIONS). I SAID THAT THERE SEEMED A GOOD PROSPECT THAT MANDELA AND DE KLERK SHOULD BE ABLE FAIRLY SOON TO ANNOUNCE AGREEMENT ON SOME FORM OF INTERIM ADMINISTRATION. SOON AS THEY DID SO, IT WOULD BE VITAL TO GET THE IMF AND WORLD BANK TO RESPOND WITH ASSISTANCE TO THE SOUTH AFRICAN ECONOMY. HIS INTERVIEW THIS MORNING IN THE WASHINGTON POST MANDELA HAD DESCRIBED THE SERIOUS PROBLEMS AFFECTING THE SOUTH AFRICAN ECONOMY AND HAD INDICATED THAT HE HOPED SHORTLY TO BE ABLE TO ASK FOR ALL REMAINING SANCTIONS TO BE REMOVED. LAKE ASKED IF IT WOULD BE HELPFUL FOR CLINTON EARLY ON TO GET THE MESSAGE THROUGH TO DE KLERK AND MANDELA THAT THEY NEEDED TO REACH AGREEMENT SOON AND THAT IF THEY DID, HE WOULD BACK THEM TO THE HILT. I SAID THAT WOULD BE VERY HELPFUL. IT WAS IMPORTANT THAT INKATHA SHOULD BE GIVEN THE OPPORTUNITY TO PARTICIPATE. LAKE AGREED.

UNITED NATIONS AND SOMALIA

7. LAKE AGREED THAT IT WOULD BE NECESSARY FOR THE U.S. TO KEEP SOME SMALLER FORCE IN SOMALIA FOR SOME TIME, TO ENSURE A SMOOTH HANDOVER TO UNOSOM. BUT HE EXPRESSED CONCERN THAT THE U.N. HAS NOT ADAPTED TO CHANGED CIRCUMSTANCES IN THE POST COLD WAR WORLD IN

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