Grateful if Embassy could be kept in picture as conditions develop.
Need to strike balance between nudging China in right direction and causing her to dig in heels. Glad that Winston Lord was able to visit China to explain in detail Administration's
concerns. In longer term Administration's intention to move MFN away from centre of US/China policy debate seems wise.
- Accept US analysis that China has breached MTCR agreement (eg Pakistan). Need to be firm with Chinese on this issue in
bilateral talks and other fora. But hope you can avoid it becoming MFN condition.
- Pursuing constructively our talks with Chinese on Hong Kong's electoral arrangements for 1994/95. Two essentials: - must be fair not rigged.
- need clear criteria for people elected in 1995 to serve through to 1999.
- Some sign of more constructive Chinese approach on economic and technical issues, eg land, airport, JLG. Hope the same spirit will show through on electoral talks.
Your assessment of reasons for Li Peng's continued absence?
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