TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 85

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HKB 091/1

RECEIVED IN REGISTRY

PA MAN ра

85

022475

MDTTAN 1580

UNCLASSIFIED

FM WASHINGTON

TO TELELETTER FCO

TELELETTER NFR

OF 30221OZ APRIL 93

AND TO TELELETTER HONG KONG PEKING

2 MAY

DESK OFFICER

Mr Rachelles

INDEX

PA

REGISTRY Action Taken

M

11) Mr Morgh's

1) Ness Bruch of

h

FOR TERRY FURNESS, HKD, FCO

CC: HONG KONG

CHANCERY, PEKING

US/CHINA: MFA

1. ON 29 APRIL I HAD LUNCH WITH ED KING, SENATOR MITCHELL'S KEY STAFFER ON CHINA AND AUTHOR OF THE MITCHELL/PELOSI BILL.

CONDITIONALITY

2. KING CONFIRMED THAT NEITHER MITCHELL NOR PELOSI INTENDED TO PUSH THEIR BILL FOR THE TIME BEING. THE NEXT STEPS WERE UP TO THE PRESIDENT.

Wou'D

3. KING SAID THAT MITCHELL HAD NO INTENTION OF REVOKING MFN. THE BILL DID NOT CALL FOR REVOCATION. BUT MITCHELL WANTS TO USE MFN TO EXERT MAXIMUM POSSIBLE LEVERAGE ON THE CHINESE. THE CONDITIONS IN THE BILL WERE - FOR THE MAIN - WELL WITHIN CHINA'S GRASP. BY NEXT YEAR MOST OF THE TIANANMEN DETAINEES HELD HAVE BEEN RELEASED IN ANY CASE: THE ADMINISTRATION WOULD HAVE HAD ANOTHER YEAR TO PRESS FOR FULL IMPLEMENTATION OF THE MOU ON PRISON LABOUR EXPORTS, AND THE MARKET ACCESS AGREEMENT. THEY ADDED THAT THE PROVISION IN THE BILL TO EXEMPT JOINT VENTURES FROM THE SCOPE OF ANY SANCTIONS WOULD MAKE THE CHINESE EAGER TO ESTABLISH JOINT VENTURES WHICH MIGHT BE TO HONG KONG'S ADVANTAGE.

SIGNED S D PATTISON

J

YYYY

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