CONFIDENTIAL

HKD

021

RECH

17 JAN 1992

SECRETARY OF STATE'S BILATERAL WITH JAPANESE FOREIGN

MINISTER, 22 JANUARY

هام

4

Jali

Objectives

-

To thank Mr Watanabe for the line he took with the Chinese

about Hong Kong and to encourage him to continue to use

bilaterals with China to this end.

Points to make

- Grateful for your efforts to influence China. Your

comments on democracy particularly helpful.

- Not a message that China wants to listen to, but important

that she is told firmly that the democratic regime is essential to the maintenance of Hong Kong's stability and prosperity.

- So, while we know China is sensitive about

"internationalisation", (standard knee jerk reaction to

legitimate foreign interest in Hong Kong) important to keep

urging China to understand the realities of a democratic capitalist economy.

TUGABD/1

CONFIDENTIAL

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