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12 JAN 1983
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given to Asia and against Europe.
What we are seeing, and
wfiz
may continue to see, is a very gradual re-distribution of
American resources in consequence of the economic growth and
strategic importance of Asia.
26.
Thirdly, we should give America what support we can
through our own influence in the area. Of primary importance to us
is the future of Hong Kong. George Shultz will, I know,
have our concerns much in mind in his talks in Peking.
The Americans will be supportive, but will, I think, see
limits to the extent to which American involvement is likely
to be productive. They are no less keen than we are that
the outcome should preserve the vigour of Hong Kong as one
of the engines of the South-East Asian economy, and hope that
whatever political arrangements may be reached will be consonant
with the progressive relaxation of tension between Taiwan
and China. They are also aware, from their dealings with
Peking, of the difficulty of accommodating Chinese self-esteem.
Elsewhere, where we have influence or a presence denied to
the Americans, as for example in Brunei, our contribution is
valued above its material cost and will, I hope, be maintained.
27.
Finally, I return to my demographic theme. Of all the
countries providing immigrants to the United States in the
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CONFIDENTIAL
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