TNAG-2918-FCO40-4193-The-internationalisation-issue--Hong-Kong-Department-paper---1993 — Page 4

CONFIDENTIAL

HONG KONG: THE INTERNATIONALISATION ISSUE

1. This paper looks at what lies behind the term "internationalisation" of the Hong Kong issue from the Chinese and from our own perspective and considers options for bringing more international pressure to bear in support of our policy on

Hong Kong.

2.

Conclusions

The most effective forms of pressure on the Chinese to change their behaviour towards Hong Kong are those which bear on China's economic interests and international standing. There is some recent evidence that these considerations are inhibiting the Chinese leadership from pursuing an even tougher line on Hong

Kong.

- The US are best placed to apply this sort of pressure especially on MFN and GATT reaccession. Working to bring US influence to bear on China, though tricky (MFN is a double edged sword), is the most effective tool we have.

Other partners either lack decisive leverage with China or willingness to use it forcefully. But some (eg Canada, Australia, some EC countries) have significant economic interests in Hong Kong which give them both an incentive and a locus for quiet intervention with the Chinese.

- We should therefore continue to brief our partners on developments in Hong Kong, and encourage them to raise quietly our shared concerns with the Chinese as the opportunity arises.

References to Hong Kong in communiques from international meetings (G7, European Councils, CHOGM) are a means of showing international concern. But they would infuriate the Chinese and be most unlikely to influence their policy for the better. An option to be considered only if relations deteriorate seriously.

internat.NAT

JEB

CONFIDENTIAL