TNAG-2914-FCO40-4189-International-support-from-the-USA-regarding-the-future-of-H-1993 — Page 83

CONFIDENTIAL

CONFIDENTIAL

FM WASHINGTON

TO IMMEDIATE FCO

TELNO 999

OF 032146Z MAY 93

INFO IMMEDIATE HONG KONG, PEKING, ACTOR

TOP COP: Q DIST?

35

025152

MDHIAN 9477

HONG KONG : PERSONAL FOR ACTING GOVERNOR

MIPT: U.S. POLICY TOWARDS CHINA AND HONG KONG

1.

WHEN THE GOVERNOR OF HONG KONG CALLED ON THE ACTING SECRETARY OF STATE, WINSTON LORD GAVE A PRIVATE EXPLANATION OF HOW THE ADMINISTRATION PROPOSED TO HANDLE MFN.

2.

LORD SAID THAT THE ADMINISTRATION UNDERSTOOD THE GREAT IMPORTANCE OF THIS ISSUE TO HONG KONG. BUT THE PRESIDENT HAD MADE A CLEAR COMMITMENT DURING THE ELECTION CAMPAIGN THAT MEN FOR CHINA WOULD NOT BE RENEWED UNCONDITIONALLY. THE PRESIDENT GENUINELY FELT THAT HE MUST USE WHAT LEVERAGE THE U.S. COULD TO TRY TO IMPROVE THE

CHINESE PERFORMANCE OVER HUMAN RIGHTS AND NON-PROLIFERATION. THERE WERE STRONG CONGRESSIONAL PRESSURES, WITH MINORITY GROUPS WANTING EITHER MFN TO BE TERMINATED NOW OR IT TO BE RENEWED UNCONDITIONALLY, BUT THE MAJORITY WANTING CONDITIONAL RENEWAL. THE PRESIDENT WAS CONCERNED TO WORK WITH CONGRESS AND NOT AGAINST IT,

AS BUSH HAD DONE.

3.

THE ADMINISTRATION, THEREFORE, WERE ENVISAGED EXTENDING MFN FOR ONE YEAR, SUBJECT TO CONDITIONS. WHETHER THIS WAS DONE BY EXECUTIVE ORDER OR BY LEGISLATION REMAINED TO BE DECIDED. THE ADMINISTRATION, OBVIOUSLY, WOULD PREFER TO PROCEED BY EXECUTIVE ORDER, BUT IT WOULD BE COUNTER-PRODUCTIVE SIMPLY TO TAKE THAT LINE WITH CONGRESS AT THIS STAGE. IT WOULD HAVE TO BE TALKED THROUGH WITH THE CONGRESSIONAL LEADERS. SO WOULD THE KIND OF CONDITIONS

THAT WOULD NEED TO BE LAID DOWN FOR FURTHER RENEWAL.

4.

LORD SAID THAT NOT MANY IN CONGRESS WANTED ACTUALLY TO LOSE MFN: THEY WANTED RATHER TO EXPLOIT WHAT LEVERAGE IT GAVE THE UNITED STATES. LORD ADDED THAT HE MIGHT HIMSELF VISIT PEKING, FOLLOWING A VISIT TO THE ASEAN CAPITALS, AROUND THE MIDDLE OF THIS MONTH. IN THE EXCHANGES SO FAR WITH THE CHINESE, THERE HAD BEEN SOME MODEST PROGRESS, BUT THEY WOULD CONTINUE FORMALLY TO REJECT ANY

CONDITIONALITY.

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