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or medium term.
4.
We then went on to discuss MFN. She readily agreed that it would be better to avoid making Chinese policy towards Hong Kong a condition for MFN renewal. She thought that the democratic Leadership in Congress would not want to press President Clinton further than he wished to go on MFN. But the Republicans, freed from their obligation to support the Bush policy, could well be more difficult. Some were likely to revert to their more natural anti-China and pro-human rights colours. There could therefore be a sharp reversal of previous voting patterns.
It was very hard to predict the outcome.
5.
Ms Despres will be in Hong Kong again in late March. I understand that she is in touch direct with the Governor about another call on him then.
Comment: I found Ms Despres very shrewd in her judgements about China and Hong Kong. It is certainly a refreshing change to meet someone with significant business responsibilities who readily concedes that the business community take a very short term view in denying the link between Hong Kong as a business- friendly environment, and a degree of democratic development. She for one certainly accepts that linkage.
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