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satisfactory. The gist was that Hong Kong would have a large degree of autonomy in negotiating air service agreements and the right to conclude and regulate arrangements on all routes except those operating to, from or through mainland China.
15. Mr Matsunaga asked whether Hong Kong would genuinely be able to reach international agreements on economic issues in its own right. Mr Luce confirmed that under the name "Hong Kong, China", Hong Kong would on its own be able to maintain and develop economic relations and include agreements with states, regions and international organisations. The letter of the agreement
allowed them to do this without consultation,
though the Hong Kong leadership might in practice choose to consult the Chinese government.
16. Mr Matsunaga commented that Hong Kong was possibly an important precedent to Taiwan. But he doubted that Taiwan
would quickly follow in Hong Kong's footsteps. The internal
situation in Taiwan was stable and the economy successful. The Taiwanese were confident that they could continue by themselves and were encouraged by the strength of their links with the US. The Chinese would no doubt try to persuade the Taiwanese people that Hong Kong was an example that they could follow, but he could not foresee an early change in Taiwanese attitudes.
Korea
17. Mr Matsunaga described the recent visit of President Chun
as very successful. He had courageously taken a risk which could affect his own political stability. He had strong opponents at home who could not be ignored. Japan could see that, because of tension with the North, the South Korean
government had to maintain a
firm line against uncontrolled democratisation, but the Chun regime was now showing signs of becoming "more concentrated". His personal entourage was becoming dictatorial. The future depended on Chun's success in
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/persuading
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