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Mr Giffard Lara

SECRET

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FROM

DATE:

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21/1117 (591)

21 November 1983 see 592)

cc: Mr Elliott

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FUTURE OF HONG KONG: EXCHANGES WITH THE JAPANESE

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The Submission below discusses the pros and cons of taking the Japanese more fully into our confidence over the files

future of Hong Kong.

2.

with the sepenne Can-2405

Прива

I have some reservations about going the whole hog with

the Japanese. I agree that in many ways they are well informed

about China and are able to follow developments there and

interpret events more easily than other foreigners. It is

probably true that they have helped the Americans in explaining

US practices to the Chinese Government. But I am far from convinced that in the complicated negotiations we are now having with the Chinese about Hong Kong, the Japanese are likely to be better informed than we are or able at this stage of the game to

do much for us. On the contrary, I think they are quite likely

to tell the Chinese that they have heard from the British what

our objectives are and there is some risk that they will get it

wrong. We have seen

widely off the mark the Japanese can sometimes be.

how

3. There is a further point, if there is a Japanese interest

it is not likely to be that British administration should be

perpetuated in Hong Kong after 1997. Their interest is that

they can continue to invest in Hong Kong and exploit the opportunities which a free port will give the Chinese and others

in Asia. It seems to me, therefore, that there is some risk that

the Japanese will be seeking to hedge their bets over Hong Kong.

If the British presence is to continue in a significant form after 1997, they might be prepared to explain the advantages of

this to the Chinese. If, on the other hand, they judge that the Chinese will be running Hong Kong after 1997, they will be working for a smooth transition to suit their own commerce and

investments.

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED SECREIN THE DEPARTMENT UNDER

SECTION 3 (4) OF THE

PUBLIC RECORDS ACT 1958

/4.

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