TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 89

CONFIDENTIAL

FM PEKING

TO DESKBY 17110OZ FCO

TELNO 668

OF 170959Z MAY 93

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HKB 091/1

RECEIVED 1

18 MAY 1993

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MDHIAN 1131

GISTRY

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DESK OFFICER

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INDEX

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Action Taken

INFO IMMEDIATE HONG KONG, WASHINGION

INFO PRIORITY SEOUL, PHNOM PENH, BANGKOK,

INFO ROUTINE TOKYO, ACTOR

WASHINGTON TELNO 1096: (NOT TO ALL) U.S./CHINA: LORD'S VISIT TO PEKING

SUMMARY

1. U.S. EMBASSY HERE HOPE CHINESE WILL MOVE FORWARD IN WEEKS BEFORE MFN DECISIONS.

DETAIL

2. THE U.S. EMBASSY HERE HAVE TAKEN A RATHER MORE OPTIMISTIC LINE WITH US AND EC COLLEAGUES THAN THAT REPORTED IN TUR. THEY SAY THAT, ALTHOUGH THE CHINESE DEFENDED THEIR POSITION IN STANDARD TERMS AND MADE NO NEW PROMISES, THERE WERE NO SHARP NEGATIVE REACTIONS IN THE TALKS. THE CHINESE NOW UNDERSTOOD THE NEED FOR MOVEMENT BY 3 JUNE AND MIGHT/MIGHT MAKE SOME HELPFUL GESTURES BEFORE THEN. THE AMERICANS HAD STRESSED THAT THEY WERE ONLY PRESSING THE CHINESE TO MOVE TOWARDS COMPLIANCE WITH THEIR PREVIOUS UNDERTAKINGS. IT WAS NOT JUST A QUESTION OF MFN: THEY WISHED TO RESTORE MOMENTUM TO THE RELATIONSHIP GENERALLY.

3. LORD REPEATED U.S. SUPPORT FOR DEMOCRATIC PROGRESS IN HONG KONG, NOTING THAT THIS WAS A MATTER FOR CHINA AND BRITAIN TO WORK OUT

TAKING INTO ACCOUNT THE WISHES OF THE PEOPLE OF HONG KONG. THE EMBASSY CLAIMED THAT THERE WAS NO CHINESE CRITICISM ABOUT INTERNATIONALISATION. (COMMENT. WE ARE SEEKING A FURTHER READ-OUT FROM THE US AMBASSADOR.)

4.

ACCORDING TO THE EMBASSY, REGIONAL DISCUSSIONS WERE VERY THIN. ON CAMBODIA THE CHINESE SAID THEY WOULD SUPPORT WHATEVER WAS THE

WILL OF THE CAMBODIAN PEOPLE: LORD URGED THEM TO GIVE MORE ACTIVE

SUPPORT TO THE PARIS AGREEMENT. NO NEW GROUND BROKEN ON NORTH KOREA. (LORD HAD NO CONTACT WITH NORTH KOREANS HERE DURING HIS

VISIT).

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