CONFIDENTIAL
HKB 02012
025665
MDLOAN 7682
10
CONFIDENTIAL
FM FCO
TO PRIORITY TOKYO
TELNO 371
OF 12083OZ JUNE 90
CHON
15 JUN 1990
ны
par Japan / Hve. Pr.
INFO PRIORITY PEKING, HONG KONG, JLG HONG KONG, BTC HONG KONG INFO PRIORITY WASHINGTON, PARIS, BONN, ROME, OTTAWA
INFO ROUTINE OTHER EC POSTS
JAPANESE VIEWS ON CHINA AND HONG KONG: OWADA'S MEETING WITH MCLAREN, 9 JUNE
SUMMARY
1.
USEFUL EXCHANGE OF VIEWS. JAPANESE NOW WISH TO ACCELERATE UNWINDING OF RESTRICTIVE MEASURES AGAINST CHINA, WHILE CONSCIOUS THAT PUBLIC AND PARLIAMENTARY PRESSURE, PARTICULARLY IN US, WILL MAKE THIS A DELICATE PROCESS. MAIN JAPANESE PRIORITY TO PRE-EMPT HOUSTON SUMMIT FROM ISSUING DECLARATION THAT WOULD CONSTRAIN THEM FROM DOING THIS.
DETAIL
CHINA
2. OWADA (POLITICAL DIRECTOR, JAPANESE MFA) CALLED ON MCLAREN ON 9 JUNE TO DISCUSS CHINA IN THE APPROACH TO THE HOUSTON SUMMIT.
3.
OWADA SAID THERE SHOULD BE IN-DEPTH DISCUSSIONS ON COORDINATION OF POLICY TOWARDS CHINA BEFORE HOUSTON TO FOCUS THE SUMMIT DISCUSSION. THERE WAS NO DOUBT IN JAPANESE MINDS THAT THE ACTIONS OF THE CHINESE LEADERSHIP LAST JUNE WERE UNFORGIVABLE. PUBLIC HOSTILITY TO CHINA IN JAPAN WAS STILL HIGH. BUT CHINA WAS MORE IMPORTANT THAN THAT. BOTH AS A FORCE FOR REGIONAL STABILITY, AND BECAUSE OF THE NEED FOR THE SORT OF ECONOMIC AND POLITICAL REFORM THAT WOULD EVENTUALLY DRIVE IT ALONG THE PATH OF EAST EUROPEAN-TYPE DEVELOPMENT (ALTHOUGH THE PARALLELS WERE NOT EXACT) CHINA COULD NOT BE ISOLATED. REFORM WOULD NOT HAPPEN OVERNIGHT, AND THE CURRENT LEADERSHIP WOULD NOT WISH TO JEOPARDISE THEIR POWER BASE. BUT ECONOMIC REFORM WAS A PREREQUISITE OF MODERNISATION. CHINA THEREFORE HAD TO BE INDUCED IN THE DIRECTION WE ALL WISHED HER TO FOLLOW. SUCH AN APPROACH WAS IMPORTANT POLITICALLY IN JAPAN, BECAUSE OF FORMER PRIME MINISTER TAKESHITA'S COMMITMENT TO THE THIRD YEN LOAN.
MCLAREN SAID THAT OUR ANALYSIS WAS SIMILAR TO THAT OF THE JAPANESE, ALTHOUGH THERE WERE DIFFERENCES OF NUANCE. FIRST, WE
4.
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