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Mission faces new challenge in lobby for MFN renewal

Carrie Lee

A BUSINESS mission headed by the Hongkong General Chamber of Commerce is to lobby Washington for the renewal of China's Most Favoured Nation trade status (MFN) for the first time since the inauguration of President Bill Clinton.

Analysts are concerned the delegation will meet with much opposition from the Clinton administration and Congress in the face of China's much-publicised opposition to Governor Chris Patten's democratic reform package.

The issue is being complicated by Beijing's warning that the political wrangle could adversely affect trade relations with the UK, while at the same time claiming that MFN is not a political issue.

But the leader of the mission, chamber chairman Paul Cheng Ming-fun, said the delegation would avoid political issues even if they were brought up by the US.

''We're not qualified to talk about anything beyond trade,'' said Mr Cheng, adding that the chamber would also encourage Mr Patten to focus on trade issues when he visits the US.

Mr Cheng said his delegation would call for the US administration to resist linking non-trade issues with the renewal of MFN.

They will focus their efforts on the administration, think-tanks close to it, and new members of the House Ways and Means Committee, the House Foreign Affairs Committee and the Senate Foreign Relations Committee.

These include senior officials in the State Department, the Trade Department and the National Security Council.

Meetings have been scheduled with the US-China Business Council, key MFN promoters, congressional members of staff and the Chinese ambassador.

''The most difficult thing is that there are many new people who do not fully understand the situation,'' Mr Cheng said.

''We will be calling for unconditional renewal of China's trade status and we will be outlining the negative impact on the United States, China and Hongkong if it is revoked or made conditional,'' he added.

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