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SECRET

TELELETTER

FROM J S WHITEHAD

TOKYO

020/15

DATED 5/12/93

FOLLOWING FOR

A E DONALD CMG

AUSS

F CO

5

CC

R J T MCLAREN,

HONG KONG

SIR P CRADDOCK KCMG

PEKING

HONG KONG : JAPANESE VIEWS

1. IN OUR SECRET AND PERSONAL TELEGRAM NUMBER 640 ABOUT HU YAO BANG'S

VISIT TO TOKYO AND HIS AND WU'S DISCUSSIONS WITH NAKASONE AND ABE ON

HONG KONG AT THAT TIME WE HAD ORIGINALLY INCLUDED A FINAL PARAGRAPH

WHICH, AFTER DISCUSSION WITH THE AMBASSADOR, HE THOUGHT SHOULD BE

SENT SEPARATELY BY LETTER, THUS PROVIDING AN OPPORTUNITY FOR A LITTLE

MORE ELABORATION.

2. THE MISSING PARAGRAPH 6 READ : YOUR OWN INTERPRETATION OF

THESE ACCOUNTS IS THAT THEY PROBABLY GIVE A FAIR INDICATION OF WHAT

WAS ACTUALLY SAID IN SUBSTANCE. THERE IS NO CAUSE AT THIS STAGE FOR THE JAPANESE TO DO MUCH MORE THAN TO HEAR WHAT THE CHINESE HAVE TO SAY. BUT OUR ASSUMPTION IS THAT THEY ADOPT AN IMPLICITLY FAVOURABLE

ATTITUDE TOWARDS CHINESE AIMS FOR 1997 AND AFTERWARDS IN ORDER TO ENSURE THAT THEIR INTERESTS IN HONG KONG ARE FAVOURABLY VIEWED BY

THE CHINESE IN THE LONGER TERM. IT IS PERHAPS PARTICULARLY EASY FOR

THE JAPANESE TO DO THIS BEFORE ANY CRITICAL POINTS IN OUR

NEGOTIATIONS WITH THE CHINESE HAVE BEEN REACHED ."

3. THE PARTICULAR POINT OF DIFFICULTY IN THAT PARAGRAPH WAS THE PHRASE ABOUT THE JAPANESE ADOPTING AN IMPLICITLY FAVOURABLE ATTITUDE TOWARDS CHINESE AIMS FOR 1997 AND AFTERWARDS. WE HAVE, ADMITTEDLY, LITTLE HARD EVIDENCE TO SUPPORT THIS VIEW, WHICH IN ANY CASE WE CONSIDER IS MORE ONE OF POSTURE RATHER THAN OF POLICIES

BEING ACTIVELY PURSUED BY THE JAPANESE. BUT THE JAPANESE UNDOUBTEDLY CONSIDER THAT THE REVERSION OF HONG KONG TO CHINA IS INEVITABLE AS

PART OF THE SWEEP OF HISTORY. THIS COMES THROUGH IN THE WAY IN WHICH SENIOR JAPANESE DISCUSS THE SUBJECT WITH US AND IN WHICH

HONG KONG IS TREATED EG ON JAPANESE TELEVISION (AND THIS DESPITE A

WILLINGNESS ON THE JAPANESE PART TO ACCEPT AND TAKE NOTE OF OUR

POINTS ABOUT THE NEED TO PRESERVE THE STABILITY AND PROSPERITY OF

HONG KONG, THE IMPORTANCE OF MAINTAINING A CAPITALIST SYSTEM IN THE

RIGHT ENVIRONMENT, AND THE BENEFITS WHICH HONG KONG PROVIDES IN ITS PRESENT FORM TO THE CHINESE, THE JAPANESE, THE AMERICANS AND THIS PART OF THE WORLD GENERALLY).

4. OUR VIEW DOES NOT GO SO FAR AS TO SUGGEST THEREFORE THAT THE

JAPANESE ARE CONSCIOUSLY INCLINED IN A PUBLIC WAY TO SUPPORT ANY

ASPECT OF CHINESE POLICY VIS-A-VIS HONG KONG. AS FAR AS THE

NEGOTIATIONS THEMSELVES ARE CONCERNED THEY ARE ATTEMPTING TO BE

STUDIOUSLY NEUTRAL. IT IS JUST THAT WHEN THEY ARE CLOSETED WITH THE

CHINESE WE ARE PRETTY CERTAIN THAT THEY WILL HEAR THE CHINESE OUT

WITH APPROPIRATE NODS AND A MEASURE OF UNDERSTANDING WHICH ADDS

POINT TO THE ENSUING CONVERSATION IN WHICH THE JAPANESE SEEK OR THE

CHINESE OFFER SAFEGUARDS FOR JAPANESE CAPITAL AFTER 1997.

NNNN

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