BACKGROUND

References:

CONFIDENTIAL

A

Mr Cooper's teleletter of 16 April; enhanced

co-operation with Japanese

B

FCO telno 375: HKD discussions with

Mr Miyamoto, 3 June

C Tokyo telno 491: Mr Paul discussions with

Japanese MFA on outcome of JLG

A 1. During a visit to Tokyo Mr Cooper Head of Planners in

April, the Japanese proposed that we should develop closer

links with the Japanese MFA on our relations with China over

Hong Kong to enable the Japanese to intervene helpfully with

the Chinese. Following this the Head of the China Division

of the MFA Miyamoto and his deputy Ishii visited London on

3-4 June for talks with HKD and FED. Subsequently Mr Paul,

HKD visited Japan (following his attendance at JLG XIX in

Hong Kong).

B

C

2.

The Japanese are particularly keen to educate the

Chinese authorities in the economic realities of Hong Kong

and the impact on business confidence of statements and

actions by the Chinese Government now and (by implication)

after 1997. Such action is very welcome and we are

encouraging the Japanese to proceed. It is important to avoid arousing Chinese suspicions that we are seeking to "internationalise" Hong Kong. But the Japanese have taken

this point well on board.

MTHAVQ/2

CONFIDENTIAL

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