TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 87

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 772

OF 17100OZ MAY 93

CONFIDENTIAL

HKB 091/1

RECEIVED IN

ISTRY

18 MAY 1993

(84)

062T60

MDHIAN 1139

DESK OFFICER

INDEX

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REGISTRY Action Taken

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pu. MFN fil pls.

INFO PRIORITY PEKING, UKREP JLG HONG KONG, WASHINGTON

WASHINGTON TELNO 1096: LORD'S VISIT TO PEKING.

1. LORD SENT ME ON 14 MAY A PERSONAL READ-OUT OF HIS VISIT TO PEKING. THE MAIN POINTS IN IT WERE:

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HE STRESSED TO THE CHINESE THE LARGE AMERICAN HUMANITARIAN, ECONOMIC AND POLITICAL STAKES IN HONG KONG. AS TUR RECORDS, THE CHINESE WARNED AGAINST INTERNATIONALISATION.

LORD JUDGED THE OVERALL RESULT OF THE VISIT TO BE DISAPPOINTING SINCE IT DID NOT PRODUCE ANY CHINESE MOVEMENT ON US CORE CONCERNS.

HE PROPOSED SOME WORKING GROUPS AND OTHER MECHANISMS TO STEP UP SINO-US ENGAGEMENT AND WORK ON KEY PROBLEMS OVER THE COMING YEAR. (LORD'S MESSAGE DID NOT SAY WHAT THE CHINESE RESPONSE WAS). IN THIS WAY THE US HOPED TO MAKE SUFFICIENT PROGRESS DURING THE YEAR LONG MFN EXTENSION TO ENABLE MFN TO BE MAINTAINED BEYOND 1994. THE OBJECTIVE OVER TIME WAS TO RELEGATE THE MFN ISSUE TO A LESS CENTRAL ROLE IN US CHINA POLICY.

THE US ADMINISTRATION WOULD DO THEIR BEST TO KEEP HONG KONG OUT OF ANY CONDITIONS ON MFN. THEY WERE CONSULTING WITH CONGRESS IN AN EFFORT TO MAINTAIN UNITY. THEY WOULD SEEK AN EXECUTIVE ORDER RATHER THAN LEGISLATION. WHETHER THE CONGRESS WOULD ACCEPT THIS, AND THE RANGE AND FLEXIBILITY OF THE CONDITIONS, REMAINED TO BE WORKED OUT.

2.

I HAVE SENT MY THANKS TO LORD FOR HIS MESSAGE THROUGH THE US CONSUL-GENERAL IN HONG KONG.

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