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35
NIKE 020 12.
PRIME MINISTER'S BILATERAL WITH THE JAPANESE PRIME MINISTER:
14 JULY
HONG KONG
(Draft contribution to a Private Secretary letter to No 10)
The Japanese welcomed our agreement with China on Hong Kong's airport and the news that the Prime Minister
will visit China. Japanese firms some in association with
British firms, stand to win substantial project business.
Mr Kaifu is due to visit Peking from 10-13 August, the first
G7 Head of Government to go there since Tiananmen. The
Foreign Secretary and officials have been talking more to
the Japanese about Hong Kong recently. They share our
concern about the risk of Chinese interference damaging
Hong Kong (though they focus more on Hong Kong's economic
autonomy than wider aspects). Mr Kaifu and Foreign Minister Nakayama spoke helpfully to the Chinese Foreign Minister during his visit to Tokyo 25-29 June. They stressed Japan's interest in Hong Kong and the success of the Joint
Declaration, urged an early agreement on the airport and warned that negative Chinese statements, eg regarding Hong Kong's Bill of Rights, could damage international
business confidence. Although the Chinese resent any "internationalisation" of Hong Kong, they did not object to
this line.
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