TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 83

GOVERMENT HOUSE HONG KONG.

HED 12 MAY 93 03:50

PG.11

Page

CONFIDENTIAL

5.

2

The Governor said he agreed with Dr. Kissinger's vicwo on arms and trade. He said there were always other modalities under which such daaues could be handled

outside MEN.

Lights could also be handled through other bilateral arrangements.

that China

6.

Dr. Kioainger said the problem was would need to be aware of when she was being asked to 40. The Chinese Guvernment must receive something in return. If Lliey saw MFN renewal na an unending annual process, they might react strongly and refuse further high level contacts.

The Governor said that Winston Lord had said to him that the US would need to find a way with China, but

This not necessarily through the MFN renewal process. seemed a sensible approach. The position of Congreaamen Mitchell and Polosi were however different and despite hig diccussion with them, he found their position unghi (Lable.

Dr. Kissinger said that both Mitchell and

There was Pelosi had no foreign policy constituenta. therefore not much point in trying to convince them. They would rather be defeated than make compromisas.

The

He then

8.

Dr. Kisaloger said he was going to China next week and asked the Governor whechor there was anything about Hong Kong which he could make a pitch for. Governor said that it would be useful for Dr. Kissinger to tell China that the way she treated Hong Kong would be seen by other comtries as a touchatone on her becoming a full player in the internatiozal community. briefed Dr. Kissinger on the recent developments regarding constitutional talks between Hong Kong and China. He said the real argument was nul about the pace of demonralisation in Hong Kong but rather about cican electoral arrangements for 1994/95 and enabling the people elected in those years to transfer through 1997.

Dr. Kissinger said he agreed with the substance of the Governor's views and constitutional proposals. would be important to leave a structure of good

He thought there wỆ TIN government in Hong Kong in 1997. ocveral other factors which the Governor might wish to consider:

(a)

(D)

Taiwan and its importance ao ceen by China for the ro-unification of the country:

and

China might have thought that the Governor had taken unilateral action by coming forward with his constitutional proposals.

th

CONFIDENTIAL