TNAG-2913-FCO40-4188-International-support-from-the-USA-regarding-the-future-of-H-1993 — Page 67

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good momentum of high-level contacts in 1992 with Foreign

Minister Qian Qichen and Vice-Premier Zhu Rongji visiting the UK

(both called on the Prime Minister). The Prime Minister met

Premier Li Peng twice (in Rio and in New York). There is a new enthusiasm for China as a market and UK exports rose 20% in 1992 (to £430 million), although they are running at less than half the level of our imports from China (£954 million).

9.

Human rights (including Tibet) continues to be an issue of

concern which we have raised with the Chinese both bilaterally

and on behalf of our EC partners at all our high level

ministerial meetings with the Chinese. Lord Howe led a

successful human rights mission to China in December 1992 (the idea was originally suggested by the Prime Minister to Li Peng).

10. In parallel with its economic reforms, China is conducting

a programme of military modernisation which is beginning to

cause concern in the region. Though the Chinese are stressing

they have no aggressive intent, there are potential regional flashpoints with Vietnam and others over oil rights in the Gulf

of Tongking and over the Spratley Islands. There is also

concern over Chinese sales of missile technology and civil nuclear technology to Iran and Pakistan. They withdrew from P5

talks on conventional arms transfers following USA sales of F16 fighters to Taiwan.

MFN Status for China

11.

Most Favoured Nation status (MFN) enables Chinese imports

into the US to benefit from preferential tariffs. Under the

Jackson-Vanik amendment to the US 1974 Trade Act, China's MFN

status has to be renewed by the President on an annual basis.

Since the Tiananmen Square incident in 1989, there has been

pressure in Congress to use MFN as a lever on China to improve

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