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FM WASHINGTON
TO IMMEDIATE FCO
TELNO 130
OF 230029Z JANUARY 93
INFO IMMEDIATE HONG KONG, JLG HONG KONG, ACTOR
INFO ROUTINE PEKING
*ARD 021/3
2 8 JAN 1993
9
101256
MDHIAN 6803
U.S./CHINA: HONG KONG AND MFN
SUMMARY
EF
1. CONGRESSIONAL CONTACTS AGREE THAT CLINTON WILL HAVE TO DO SOMETHING TO ADDRESS HUMAN RIGHTS CONCERNS IN CHINA. CONGRESSWOMAN PELOSI INTENDS TO INTRODUCE A BILL SIMILAR TO LAST YEAR'S SETTING CONDITIONS FOR MFN. BUT SHE HOPES PRESIDENT CLINTON WILL TAKE THE INITIATIVE BY OUTLINING HIS OWN CONDITIONS FOR RENEWAL IN 1994.
DETAIL
2.
DURING HIS VISIT TO WASHINGTON ON 21-22 JANUARY, SIR CHARLES POWELL RAISED MFN WITH A NUMBER OF SENATORS AND CONGRESSMEN. HE UNDERLINED THE DAMAGE THAT WITHDRAWING MFN WOULD DO TO HONG KONG. THERE WAS ALREADY UNCERTAINTY ABOUT THE OUTCOME OF THE GOVERNOR'S DEMOCRACY PROPOSALS. THE LAST THING HONG KONG NEEDED WAS PROBLEMS OVER MFN. THIS COULD RESULT IN A SERIOUS LOSS OF CONFIDENCE IN HONG KONG,
3.
CONGRESSWOMAN PELOSI (WHO HAS LED THE CAMPAIGN TO ATTACH CONDITIONS TO MFN) SAID SHE HAD NO WISH TO SEE MFN REVOKED. BUT THE THREAT OF WITHDRAWAL WAS USEFUL LEVERAGE ON THE CHINESE. SHE HAD RECOMMENDED TO PRESIDENT CLINTON THAT HE SHOULD NEVER SAY THAT THE U.S. WERE NOT PREPARED TO USE MFN AS A TOOL. PELOSI SAID THAT SHE HAD ALSO SUGGESTED TO THE TRANSITION TEAM THAT THEY CONSIDER OTHER WAYS OF PUTTING PRESSURE ON CHINA. THIS SHOULD INCLUDE A TOUGHER U.S. STANCE ON WORLD BANK LOANS. PELOSI SAID THAT SHE WOULD LIKE CLINTON TO PROPOSE RENEWING MFN IN JUNE 1993, BUT, AT THE SAME TIME, ANNOUNCE CONDITIONS FOR RENEWAL IN 1994. THIS WOULD DEFUSE THE ISSUE, AND WOULD INVOLVE THE LEAST CHINA BASHING.
BUT PELOSI SAID SHE WANTED TO KEEP UP THE PRESSURE BY INTRODUCING A CONDITIONALITY BILL BY 1 MARCH, ON THE LINES OF
4.
1
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