Industry confident of MFN renewal

Federation of Hong Kong Industries (FHKI) chairman Henry Tang Ying-yen says he is optimistic the United States will renew China's most favoured nation (MFN) trade status.

'I don't worry too much that the US Government will cancel China's MFN this year,' Mr Tang said.

'President [Bill] Clinton has pointed out that MFN is a blunt instrument which will damage the bilateral business and trading relationships between the two countries.' Conservative groups in the US have been increasing their efforts to block Mr Clinton's annual decision to grant China MFN due to recent revelations of Beijing's alleged role in making political contributions to the White House.

'I don't know if any non-governmental organisation has an involvement in the scandal, but the Chinese Government has made it clear that it has no involvement,' Mr Tang said.

He said the federation would submit a detailed proposal to Chief Executive-designate Tung Chee-hwa by October concerning the establishment of a border industrial zone at Sha Tau Kok.

'We want to give him something concrete before the first SAR budget,' Mr Tang said.