Background

References: A Hong Kong telnos 3687 and 3688 reporting

Nakayama's visit to Hong Kong on 4 November

Tokyo telno 1146 about Japanese reactions to

repatriation of Vietnamese boat people

C Tokyo telno i191

Hong Kong

1. Japan is Hong Kong's third largest trading partner after China

and the US, accounting for 19% of total imports and 6% of total

exports in 1988. Japan has also overtaken the United States as Hong Kong's largest source of foreign investment.

2. The Japanese continue to be cooperative over rebuilding confidence, although they are unlikely to be willing to help over

passports.

Vietnamese boat people

3. The Japanese have taken an uncritical line over our repatriation of Vietnamese boat people but they have been reticent in their public support for the UK in face of US opposition.

There

4. The Japanese recognise the need for alternatives to voluntary repatriation as their own refugee problem continues to grow. are over 3,000 boat people in the holding camps in Japan, many of

whom are of Chinese ethnic origin. On 21 December the Japanese repatriated the first batch of Chinese boat people to China.

BATADC (3)

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