DPA
PA SCR 67/6669
RESTRICTED HKB 020/6
Sino-Japanese Relations in Hong Kong
1.
Satoh, the Japanese Consul-General, telephoned to give
me some background information and commentary on the recent discussion between the Chinese and Japanese foreign ministers
during Premier Li Peng's visit to Tokyo. Satoh said that
when the two met on 15 April it had been the Chinese who raised
the subject of Hong Kong, noting that previously the Japanese
had expressed interest during a meeting of their respective
vice foreign ministers in March. The Chinese foreign minister
had not said much that was new but the Japanese had noted
particularly his remarks about the brain drain and what Minister
Qian saw as an outflow of money from Hong Kong. Qian had
emphasised that he was not concerned by this and believed
that both money and people would come back as confidence
re-established itself. Qian had underlined China's support
for Hong Kong as a financial and trade centre and hoped that
the Japanese would increase their investment there. In reply the Japanese foreign minister had responded very positively, recalling his visit to Hong Kong in 1988 when he had met the
Governor and giving his view that arrangements for the transfer of sovereignty were going smoothly. He promised to pass on
Qian's views on Japanese investment to Japanese businessmen.
2.
In comment, Satoh said that so far as the Japanese
could recall this was the first time that the Chinese had
taken the initiative in raising Hong Kong with them and they
saw it, on the whole,
the whole, as a helpful sign of Chinese interest.
Meanwhile the Japanese government would continue discreetly to encourage leading Japanese visitors, both official and
commercial, to take opportunities in conversation with the
Chinese leadership to stress their concern for the full
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