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Japanese present had to say can by no means be deemed to be a conclusive statement of Japanese views, they are worth recording because in the most part they are reassuring and they reflected the views expressed at the meeting of the Businessmen's Committee. 4. They all shared the view advanced by Sir Y K Kan that China's interest remained in ensuring the continued stability and pros- perity of Hong Kong. leaders endorsed their belief that some accommodation could be
What they heard of the views of Chinese found with the British Government in terms of dealing with the sovereignty problem which would not necessarily lead to the absorption of Hong Kong. Chinese in respect of Taiwan but a distinction had to be drawn
Absorption was certainly the aim of the between the treatment of Taiwan and that of Hong Kong. refrained of course from making any suggestions about how the
They sovereignty question might be resolved. them not to treat the issue lightly because it was a real and not
Sir Y K Kan encouraged an imagined problem. The nature of sovereignty affected the social and legal fabric as much as the political and administra- tive ones. He made a great deal of the need for Hong Kong to retain its British legal system. took issue with what he had to say on this and Dr Okita commented
None of the Japanese present at one point that at some stage some fundamental change in the nature of Britain's involvement with Hong Kong was inevitable. implied that we would all be mistaken if we did not realise the ultimate need for some such change. clear consensus among the Japanese present that the Chinese govern-
But that said, there was a ment wanted to find a way through the present situation which ensured prosperity and stability.
He
5. This view was endorsed in the specifically economic sense with the conclusion that Japanese boardrooms had looked carefully at the present state of relations between China and Britain over Hong Kong and had concluded that it remained in the interest of Japanese companies to maintain and indeed expand their economic involvement there. There was no dissent from the view that Japanese companies could still expect to make a good deal of money out of Hong Kong. The troubles on the stock market were dismissed as of little importance: it could not be seen as an accurate barometer of Hong Kong's economic health.
6. Finally, I enclose a copy of a letter which the Ambassador received from Eikichi Itoh of C Itoh about his meeting with you. As you will see, he found this very useful and we are grateful to you for agreeing to take it on. effect and if you were prepared to see other senior Japanese
I am sure that it had the right businessmen in Hong Kong for the same purpose, this would make a further important contribution to the work of ensuring the Japanese have a settled and balanced view of Hong Kong's future.
Yous ens,
caM Elliott Esq
FED, FCO
A C Galsworthy Esq PEKING
JS Whitehead
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