CONFIDENTIAL

5. on the human rights/economic nexus I suggested that Satoh try to avoid unnecessary intellectual tangles. The economic requirements of Hong Kong in relation to MFN were immediate and serious. We could not afford the luxury of the long view. AS regards Europe there was a long term and determined wish to bring China into a more sensible relationship with the outside world. Human rights were an important part of this. There was no inclination to overlook then. The lack of China's performance on this front was inevitably a dampener on early top-level political warming (vide Asia Group). But for practical purposes, now, as my personal view, MFN and human rights should be treated in separate boxes. Satoh thought this sensible.

6.

Satoh told me that Miyazawa would be speaking next week on the telephone to Mulroney. Satoh would encourage a putting together of heads on Hong Kong/MFN. Comment: this ought only to do good, given explicit Canadian support for the Governor's plans and the continuing need to stiffen Japanese sentiment.

John Boyd

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TO IMMEDIATE TOKYO

TELNO 677

OF 181725Z DECEMBER 92

INFO IMMEDIATE HONG KONG, PEKING, UKREP JLG HONG KONG

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OUR TELNO 672 AND HONG KONG TELNO 2976: HONG KONG/JAPAN

SUMMARY

1.

PUS HANDS OVER SIR J COLES' MESSAGE TO IKEDA TO JAPANESE

AMBASSADOR.

DETAIL

2.

AT HIS MEETING WITH THE JAPANESE AMBASSADOR ON 18 DECEMBER, THE PUS SAID THAT WE HAD BEEN VERY APPRECIATIVE OF JAPANESE HELP OVER HONG KONG IN THE PAST. NOW WAS A DIFFICULT TIME IN HONG KONG WITH THE CHINESE PUTTING PRESSURE ON THE BUSINESS COMMUNITY, IN PARTICULAR MEMBERS OF LEGCO. AGAINST THIS BACKGROUND THE GOVERNOR INTENDED TO PUT HIS PROPOSALS TO LEGCO IN FEBRUARY, OR EVEN IN JANUARY. SIR J COLES HAD SPOKEN TO IKEDA ABOUT HONG KONG DURING HIS RECENT VISIT TO JAPAN AND HAD DECIDED TO SEND HIM A MESSAGE GIVING OUR CURRENT THOUGHTS ON HONG KONG. THE PUS HANDED OVER A COPY OF THE MESSAGE. THE AMBASSADOR SAID THAT THE JAPANESE GOVERNMENT HAD TAKEN EVERY OPPORTUNITY TO EMPHASISE TO THE CHINESE THE IMPORTANCE OF THE STABILITY AND PROSPERITY OF HONG KONG, WHICH WERE IN CHINA'S INTERESTS AS WELL.

AS WELL. HE SAID THAT WHILE IT WOULD NOT BE APPROPRIATE FOR A THIRD COUNTRY, IE. JAPAN, TO GO INTO QUESTIONS OF THE DETAILED PROCESS OF REFORM WITH THE CHINESE, THE JAPANESE WERE PREPARED TO DO ANYTHING ELSE THEY COULD.

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PS/MR GOODLAD.

SIR J COLES

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