9.
CONFIDENTAL
13
MOST FAVOURED NATION STATUS FOR CHINA
Present Position
TIB is reviewing the
renewal in 1994, including
strategy
the
for MFN
for lobbying
messages and the means of
delivering the messages.
has
Recent TIB briefing of LegCo's Trade and Industry Panel provoked queries as to whether the Government is reducing its support for MFN renewal, and requests (from the press and some LegCo Members) for the Governor to continue to lead the MFN lobbying exercise in the US next year.
Line to Take
Kong. China's
Renewal of China's MFN status is very important to Hong
China is Hong Kong's largest trading partner and 70% of exports go to the US. Loss of MFN would have significant
impact on Hong Kong's economic growth and jobs. It would also undermine business confidence in Hong Kong.
The economic importance of MFN
renewal to Hong Kong
increases as Chinese re-exports to the US increase relative to Hong Kong's domestic exports.
The Government therefore will be committing more
resources to the MFN lobbying exercise next year and will be
attaching equally high, if not higher, priority to the exercise.
One
TIB is reviewing our MFN lobbying strategy. development has significantly affected Hong Kong's position
compared with previous years.
President Clinton's Executive
Order directly links future renewal of MFN status with China's
performance in improving its human rights conditions. This is a
sensitive issue in both China and the US.
The debate in Washington will focus on this issue, High-level, high profile lobbying would inevitably put Hong Kong
representatives in the position of having to defend China's human rights record. We would appear as apologists for China. TIB is
therefore recommending an intensive, but lower-profile lobbying
campaign, making more use of US business allies, and is not recommending that the Governor spearhead it as he did last year.
20'd
BSOL TES 258+
(59) 301:30 S. ADJBI
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