TNAG-2913-FCO40-4188-International-support-from-the-USA-regarding-the-future-of-H-1993 — Page 61

A

GATT

The

The new Administration announced during Sir Leon Brittan's

visit to Washington on 11 February that they would seek an extension of their fast track negotiating authority. But they have not yet decided the details of their approach to GATT. There are strong domestic pressures on them to reopen many of the positions taken by the Bush Administration. Minister might say:

The Prime

Glad President will be seeking fast track extension for

GATT negotiations. Hope he will be able to work for

shortest possible extension, say 3-6 months: would allow

time to complete outstanding work while keeping pressure on

negotiators.

Will be encouraging him, above all, to announce an early

decision so that negotiators know the timescale they are

working to.

China/Hong Kong

President Clinton is likely to be prepared to use MFN as a lever

on China. Anything less than unconditional renewal of MFN would

severely damage Hong Kong's economy. We are therefore arguing

for unconditional renewal, though we recognise that the

Administration (and Congress) may wish to attach at least some

conditions. Mr Patten has tentatively scheduled a one week visit

to the US in the period 30 April 16 May; firm plans depend on

when President Clinton would be able to meet him. The Prime

Minister might say:

Will be encouraging President Clinton to consider

unconditional renewal of MFN status for China.

Renewal of MFN essential to Hong Kong's economy (70% of

China's exports to US pass through Hong Kong). If not

renewed, estimate that GDP growth would be halved and

substantial job losses.