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Reference

Hick

02615

123

Mr Thomson

PRIME MINISTER'S FAR EASTERN TRIP

1.

this morning on

The Japanese Minister, Mr Tsutsumi, called for 418

Mr Donald to ask about:

2.

a. the Prime Minister's visit to Japan;

b.

the future of Hong Kong.

On (a), Mr Donald told him that the Prime Minister's programme had now been agreed at this end and the Embassy in Tokyo were discussing it with the Japanese Foreign Ministry. It might include, in addition to the consultations with Mr Suzuki, visits to Tsukuba Science City; Tokajura nuclear power station; an advanced robotics factory; and possibly a cultural visit also. Mr Tsutsumi seemed unbriefed, both on the programme and on the state of play on possible technology agreement: Mr Donald emphasised the political advantages which would flow from linking such an agreement to the Prime Minister's visit. He added

that, in the context of the obvious difficulties in our relationship (Nissan; trade friction; grudging support over the Falklands) it was important to use the visit to emphasis the community of interests we shared in fundamental questions, including the application of new technology which had been a prominent theme at the Versailles Summit.

3. He suggested that the Prime Minister might be particularly interested,in view of her impending visit to China, to hear something of Japanese views on the development of China and its relations with other countries, In addition they would no doubt discuss other international problems (Afghanistan, Poland, Cambodia, Middle East).

4.

>

Mr Tsutsumi asked whether the future of Hong Kong would be the main topic of discussions in China. Mr Donald said this issue should not be seen out of proportion. China, with its vast population, and many international interests, had more important concerns than the future of Hong Kong. Nevertheless it would undoubtedly be a topic discussed during the visit. Much progress had already been made in the Hong Kong/China relationship (here he alluded to the situation in 1967, said it was too early to judge how much further the relationship might have developed by 1997). He said that one should not assume that the Chinese had a definite plan for the future of Hong Kong. They were now thinking seriously about it, and agreed with us on the importance of main- taining Hong Kong as a free port and centre of finance. Press speculation, based on non-governmental discussions, should not be taken too seriously. At any rate nothing by way of a definite 'solution' was likely to emerge from Mrs Thatcher's visit.

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