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Classification

CONFIDENTIAL

OUT TELEGRAM (CONT)

Caveat

Precedence

DESKBY

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3

5:

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101

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151

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2.

-if-the-Japanese-side-could-take any opportunities to explain

privately that Chinese attacks on business confidence in Hong

Kong run the serious, long-term risk of undermining international

confidence in the one country two systems policy and China's

standing in the world. In particular, it would be helpful to

make the following points:

a) gradual political as well as economic evolution in Hong Kong

is necessary if prosperity and stability are to be preserved

b) prosperous well educated people understandably wanted a

greater share in running their own affairs

c) as a major economic partner of Hong Kong, Japan considers that Hong Kong works so well not only because of its capitalist

economic model, but because of Hong Kong's way of life as laid

down in the Joint Declaration. Preserving this way of life is a key part of maintaining Hong Kong's success.

Message ends.

2. The PUS proposes to hand over a copy to Kitamura

on 18 December.

231

HURD

24

CJ

261

YYYY

27

ΜΑΙΝ

28

HKD

29

FED

30

NEWS D

RAD

PUSD

SIR J COLES

i

For distribution craer see Page

Printed in the UK for HMSC 1/91 Dd FC03276 M 100 CCN 56294

-MR-

Catchword:

STOCK No. C037C

YFE7

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