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Kong's attractiveness to international business and investment in
the future.
Our own cooperation with the Chinese is now better, following the
Prime Minister's visit to Peking in September to sign the Memorandum
of Understanding on the Airport. As a result, there is a renewed
sense of confidence in Hong Kong, reinforced by improving economic
growth. But as you will know, the Chinese are concerned about some recent political developments in Hong Kong, particularly what they
see as a shift in power from the executive to the legislature
following the elections in September. We have explained to them
that we have no intention of changing Hong Kong's political system,
that we remain committed to the provisions of the Sino-British Joint Declaration, but that economic and political development in Hong Kong need to go hand in hand.
You also refer to the need to obtain a positive response in the
fields of arms control and disarmament. We share this view. We
must continue to push the Chinese to adopt a more responsible
approach to proliferation issues. I know that this is an area in
which Japan has already been very active. International pressure
already seems to have brought some dividends: Chinese agreement to
discuss conventional arms control and non-proliferation issues with
other Permanent Members of the UN Security Council; their (apparent)
willingness to give serious consideration to adopting the MTCR
guidelines, and to adhering to the NPT are all encouraging signs.
But there is still much scope for progress. China's refusal to
participate in the vote on the UNGA resolution establishing the UN
Arms Transfer Register was very disappointing especially in view of
the international community's overwhelming support for the
resolution. Despite their ambivalent attitude towards such
confidence building we must continue our efforts to persuade the
Chinese to participate in the register. We should try to persuade
the Chinese unconditionally to adopt the MTCR guidelines and to halt
destabilising missile and missile technology sales to the Middle
East and Pakistan. We should also continue to seek early Chinese
adherence to the NPT, and to the Nuclear Suppliers Group.
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