SECRETARY OF STATE'S TALKS WITH MR NAKAYAMA, JAPANESE FOREIGN

MINISTER, 12 JANUARY 1990

FILE.

6

HONG KONG/VIETNAMESE BOAT PEOPLE

Points to make

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HKB 02012

RECEIVED IN REGISTRY

23 JAN1990

OFFICER

REGISTRY

19A

Action Taken

Hong Kong

Purpose of my visit to Hong Kong this weekend is to discuss with

Governor and his advisers, and many others in Hong Kong, what

Britain is doing and can do in the future to restore confidence.

Want to have the opportunity to listen to views of Hong Kong people

at first hand before taking any final decision on constitutional

development.

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Appreciate your helpful visit to Hong Kong in November as demonstration of Japanese confidence in the territory.

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Welcome continuing high level of Japanese investment in Hong

Kong.

In view of Japan's major economic stake in Hong Kong

both as

important market in its own right and as gateway to China hope Japan will continue to do all it can to maintain confidence of Hong Kong people in their future.

One specific way in which Japan could help is by giving some Hong Kong people assurance of right of abode in Japan without requiring them to leave Hong Kong in order to qualify for that right. Understand that nationality is a very sensitive issue in Japan. But impact of measures we have taken would be greatly enhanced if others could follow our lead by taking comparable measures eg for

key personnel employed by Japanese firms.

Another specific step which Japan could take to help restore confidence in the territory would be early resumption of air separation talks. Important that by 1997 Hong Kong should have a set of air services agreements in place which will continue after

BATADC

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