3. THERE HAS BEEN A PARTICULAR PROBLEM OVER THE LAST ROUND OF THE TALKS ON 19/20 OCTOBER. IT IS PLANN TO ALL THAT SOMETHING MUST HAVE

HAPPENED TO PRODUCE THE WARMER COMMUNIQUE WHICH WAS ISSUED AT THE

CONCLUSION OF THAT ROUND AND THE TURNING OFF OF THE CHINESE

PROPAGANDA TAP WHICH ACCOMPANHED WT. IT IS ALSO PUBLIC KNOWLEDGE

THAT THE GOVERNOR, THE AMBASSADOR AND THE UNOFFICIALS HAD DICUSSIONS WITH MINISTERS ON 6/7 OCTOBER AND THE EXISTENCE OF A

PRIME MMNISTERIAL LETTER OR MESSAGE HAS BEEN WIDELY CANVASSED W

THE PRESS. THE LINE WE HAVE BEEN TAK-ING WITH PEOPLE LIKE THE

AMERICANS AND AUSTRALIANS (AND THE GOVERNOR OF MACAU) (MS THAT WE

HAVE BEEN SEEKING A WAY ROUND THE OBSTACLE CONSTITUTED BY CHINESE

*INSISTENCE ON THE RECOVERY OF BOTH SOVEREIGNTY AND ADMINISTRATION

SO THAT WE CAN GET DOWN TO DETAILED DISCUSSION OF PRACTICAL

ARRANGEMENTS AFTER 1997: AND THAT WE NOW THINK WE HAVE FOUND SUCH

A WAY. THE LINE TAKEN BY DICK CLIFT WITH BENSON OF THE AUSTRALIAN

HIGH COMMISSION ON 26 OCTOBER (PARA 5 OF FCO TELNO 365 TO CANBERRA )

*S MUCH MORE FORTHCOMING. # ASSUME WE HAVE AUTHORITY TO USE IT ON

THE USUAL STRICTLY PERSONAL BASIS.

ABD

4. WE ALSO AGREE THAT THE TIME HAS COME TO TAKE THE JAPANESE MORE

HNTO OUR COFIDENCE. THEIR COMMERICAL AND OTHER INTERESTS HERE ARE

CONSIDERABLY GREATER THAN THOSE OF THE AUSTRALIIANS, CANADIANS

AND NEW ZEALANDERS AND THE JAPANESE COMMUNITY MS THE LARGEST OF

THE FOREIGN COMMUNITIES HN HONG KONG AFTER THE AMERICAN COMMUNITY.

IT IS THEREFORE IN THE JAPANESE INTEREST THAT THE STATUS QUO SHOULD

CONTINUE. THE CHINESE CLEARLY RECOGNISE THIS AND THERE IS AMPLE

EVIDENCE THAT THEY TAKE EVERY OPPORTUNITY TO ASSURE THE JAPANESE

THAT EVERYTHING WILL REMAIN THE SAME AFTER THEY HAVE RECOVERED

SOVEREIGNTY AND IMPLEMENTED THEMR PLAN, BY CONTRAST WE TELL THE

JAPANESE VERY LITTLE ABOUT OUR POSITION (# DO NOT KNOW WHAT

LINE HUGH CORTAZZ WAS AUTHORISED TO TAKE IN HIS CONSULTATENS WITH THE JAPANESE FOREIGN MINISTER HIN SEPTEMBER TOKYO TELNO (488)

REFERS) AND AS FAR AS # KNOW WE HAVE NOT RESPONDED POSITIVELY TO

THE OCCASIONAL JAPANESE EXPRESSIONS OF WILLINGNESS TO HELP. PERCY

CRADOCK MENTIONED THE NEW JAPANESE CONSUL GENERAL HERE IN

HIS TELELETTER. HE MS CLEARLY A FIRST CLASS MAN AND IT WOULD BE

HELPFUL TO BE AUTHORISED TO GIVE HIM AT LEAST THE SAME LEVEL OF

BRIEF BNG AS WE ARE NOW GIVING THE CANADIANS AND NEW ZEALANDERS.

5. ON A MORE GENERAL POINT, THE PROBLEM OF BRIEF ING REPRESENTATIVES

OF FRIENDLY COUNTRIES IS PROBABLY MORE ACUTE HERE THAN

ANYWHERE ELSE. THE AMERICAN, QUOTE OLD COMMONWEALTH UNQUOTE, AND

JAPANESE REPRESENTATIVES AND THOSE OF THE MAJOR COMMUNITY COUNTRIES

ARE ALL SENIOR PEOPLE. THEIR RESPONSIBILITIES LIE EXCLUSIVELY IN

HONG KONG, THEY STUDY THE PRESS CLOSELY, THEY HAVE GOOD CONTACTS

WITH THE LOCAL COMMUNITY AND THEY KEEP IN TOUCH WITH NONA AND

OTHER CHINESE OFFICIALS BASED HERE. SO THEY ARE VERY WELL INFORMED

ABOUT THE ISSUES INVOLVED AND KNOW EXACTLY WHAT QUESTIONS TO ASK.

SHGNED: R J T MCLAREN

J

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