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10.
Second, some contend that we should not imperil the wider Sino-British relationship particularly the trade
relationship
Kong.
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by disagreements with China over Hong
But Hong Kong is the largest single component in that relationship, and the most important one. Our responsibilities to Hong Kong's citizens must come first. In the longer term, our standing in China and Asia is likely to be strongly affected by how decently we undertake our responsibilities in Hong Kong. There is no reason, in any case, why disagreements over Hong Kong should affect the wider relationship. China would be foolish indeed if, as she seeks to enter the GATT, she was to choose to discriminate against British trade. China's President Jiang Zemin rightly argued to President Clinton at their recent summit that politics and trade should be kept separate; what's true in Seattle is just as true in Peking.
11. Nor should we think that there is an arithmetical relationship between diplomatic harmony and economic benefits, desirable as both may be. From the mid-80s until last year, we actually saw a steady fall in our exports to China, and a rise in China's exports to Britain. A surplus for Britain has turned into a two-to-one surplus for China. This year, at last, our exports have actually been rising sharply again.
and that wa
12. Third, some people suggest (a touch undiplomatically) that China is capable of behaving thuggishly if she doesn't get her own way; should therefore do whatever she wants after a suitably decorous effort to put our own point of view. If necessary, we can always mask retreat on a matter of substance with some gracefully opaque form of words.
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