RESTRICTED
106700
MDTTAN 7454
{་
EXPORTS OF M-11 MISSILES, WHICH THE AMERICANS CONTINUED TO BELIEVE WERE IN BREACH OF CHINA'S COMMITMENT TO OBSERVE MTCR GUIDELINES.
THE CHINESE WOULD HAVE TO PRODUCE CONVINCING EVIDENCE TO THE
CONTRARY. TOMSEN NOTED THAT THE U.S. ALSO HAD SERIOUS CONCERNS
ABOUT CHINESE EXPORTS OF CW PRECURSORS AND NUCLEAR TECHNOLOGY TO
IRAN, BOTH OF WHICH COULD TRIGGER SANCTIONS UNDER U.S. LAW. HE WAS WORRIED THAT THE CHINESE MIGHT FOCUS ON THE NARROW REQUIREMENT TO ACHIEVE MFN RENEWAL AND IGNORE OTHER AREAS OF U.S. CONCERN WHICH
COULD CAUSE REAL PROBLEMS TO THE BILATERAL RELATIONSHIP.
5.
ON TRADE ISSUES, TOMSEN SAID THAT THERE WAS AGAIN SOME PROGRESS IN THE RIGHT DIRECTION, BUT THE QUESTION WAS ONE OF PACE. THE CHINESE CLEARLY WANTED GATT MEMBERSHIP BADLY, BUT THE U.S. AND EC WERE AGREED THAT THEY HAD A LONG WAY TO GO IN OPENING UP THEIR MARKETS. IF ANYTHING, THE LATEST ECONOMIC PRESSURES WERE LIKELY TO ENCOURAGE THE CHINESE TO MOVE IN THE OTHER DIRECTION, EG BY IMPOSING IMPORT CONTROLS.
6. SIR C POWELL LATER CALLED ON THE CHINESE AMBASSADOR (LI DAOYU)
WHO WAS SINGULARLY UNINFORMATIVE, SAYING ONLY THAT U.S./CHINESE RELATIONS WERE PROGRESSING IN THE RIGHT DIRECTION, BUT THE ROAD WAS
ANYTHING BUT SMOOTH.
SIGNED T M DOWSE
YYYY
ΜΑΙΝ
1
SINGLE COPIES
FED//W MORRIS
NNNN
DISTRIBUTION
1
2
PAGE
RESTRICTED
No comments yet.
Private notes are available after approval.