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MDHIAN 0598

COULD WELL BE PLAYED UP IN YOUR PRESS INTERVIEWS.

LINES TO TMKE

7.

I SHALL NO OFFER COMMENT HERE ABOUT THE TRADE-ORIENTATED EVENTS IN YOUR PROGRAMME, OR ABOUT YOUR ECONOMIC MEETINGS ON WHICH YOUR ETO WILL BE BRIEFING YOU. I WOULD ONLY NOTE THAT WE HAVE BEEN MAKING A MAJOR EFFORT IN TOKYO TO UNDERLINE OUR KEEN INTEREST IN SEEKING BRITISH COMPANIES WITH A MAJOR SHARE OF THE AIRPORT PROJECT AND IN THIS CONNECTION PROMOTING A JAPAN:/BRITISH BID. I THINK THE MAIN POLITICAL

MESSAGE SHOULD BE TO REMIND YOUR INTERLOCUTORS OF THE IMPORTANCE OF HONG KONG FOR JAPAN AND TO MAKE THE POINT THAT A POOR TRANSITION IN 1997 WOULD BE BAD NOT ONLY FOR THEIR ECONOMIC INTERESTS BUT ALSO FOR RELATIONS WITH CHINA AND FOR GENERAL ASIAN STABILITY AND FOR LONG TERM JAPANESE AMBITIONS TO BECOME THE ASIAN PILLAR OF A QUOTE NEW WORLD ORDER UNQUOTE. YOU CAN CAND SHOULD STILL BE APPRECIATIVE OF CONTINUING JAPANESE INVESTMENT IN HONG KONG AND GOVERNMENT HELP IN CREATING A FAVOURABLE ENVIRONMENT FOR IT, BUT NOTE THAT THIS BECOMES STEADILY MORE, NOT LESS, IMPORTANT AS 1997 APPROACHES.

8.

THE MAIN SPECIFIC REQUEST YOU SHOULD BE MAKING REMAINS THE CONCLUSION OF A SEPARATE ASA. AFTER THE ASSURANCES GIVEN LAST YEAR TO THE PRIME MINISTER IT IS QUITE INTOLERABLE THAT THE JAPANESE ARE STILL DRAGGING THEIR FEET. YOU SHOULD RAISE THIS NOT ONLY WLOH THE MFA AND MOT (IN THE LATTER CASE IN CONTEXT OF IMPROVING AIR LINKS/TOURISM MORE GENERALLY) BUT ALSO WITH THE PRIME MINISTER AND OZAWA. SHOULD PRESS FOR AN EARLY DATE FOR RESUMPTION OF TALKS.

9.

YOU

ON VBPS, THERE IS A TENDENCY HERE TO SEE THE PROBLEM AS LESS DRAMATIC SINCE THE RATE OF ARRIVALS THIS YEAR HAS BEEN LOWER. IT IS IMPORTANT TO COUNTER THAT AND PRESS FOR CONTINUED JAPANESE SUPPORT.

10. FOR YOUR TALKS WITH THE MFA, I HOPE YOU CAN KEEP TO A SMALL DELEGATION. TOO MANY MEMBERS IN THE PARTY WILL REDUCE THE OPPORTUNITIES FOR A SERIOUS DIALOGUE.NAKAYAMA IS PERSONALLY SYMPATHETIC TO HONG KONG

YOU MIGHT SEEK

·

CONFIRMATION THAT HE PLANS TO GO TO CHINA IN JANAURY CAS REPORTED) . IF SO HE MIGHT BE INVITED TO REPEAT A STRONG MESSAGE OF SUPPORT FOR HONG KONG. YOU MAY HAVE SOME MORE SPECIFIC POINTS (EG ON THE AIRPORT) YOU WOULD ALSO LIKE HIM TO

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