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TELNO 818

OF 200758Z NOVEMBER 92

INFO IMMEDIATE HONG KONG

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Mrs Barnes Jones, Clut supput)

(lut supput) Tapin 3/11.

Usefully, Japanese CG in HK, (OKITA)

loot week made Japan's "quiet sympathy

to the 19 Nov. media summary.

"

andible ding

We shall have to curuk to encourage the Japanese to speak to China in such terms.

INFO ROUTINE PEKING, UKREP JLG HONG KONG, WASHINGTON

SIR J COLES'S TALKS IN JAPAN: HONG KONG

SUMMARY

1.

23/11 ch

JAPANESE OFFICIALS EXPRESSED SOME PRIVATE CONCERN AT THE EMPHASIS BEING GIVEN TO THE POLITICAL ISSUES BUT REAFFIRMED THEIR BROAD SUPPORT FOR DEMOCRACY IN HONG KONG. COLES STRESSED THAT POLITICS AND ECONOMICS COULD NOT BE SEPARATED. AGREEMENT TO KEEP IN TOUCH OVER AMERICAN MOVES ON MFN STATUS FOR CHINA.

DETAIL

2.

DURING HIS TALKS HERE ON 10/11 NOVEMBER, COLES DISCUSSED HONG KONG WITH OWADA (MFA VICE-MINISTER), IKEDA (ASIA

DIRECTOR-GENERAL), SATO (NORTH AMERICA DIRECTOR-GENERAL) AND TANINO (PM'S OFFICE). ALL WERE LOOKING FORWARD TO THE GOVERNOR'S VISIT ON 25-28 NOVEMBER, AND TO THE OPPORTUNITY FOR A FULL DISCUSSION OF RECENT DEVELOPMENTS, BUT IN THE MEANTIME THEY OFFERED SOME BRIEF COMMENTS TO COLES.

3. THE BROAD MESSAGE WAS OF CONTINUED JAPANESE INTEREST IN AND SUPPORT FOR HONG KONG. IKEDA CONFIRMED JAPAN'S QUOTE QUIET SYMPATHY UNQUOTE FOR WHAT THE GOVERNOR WAS SEEKING TO DO IN HONG KONG. HONG KONG'S CONTINUED PROSPERITY WAS OF GREAT IMPORTANCE TO CHINA. OWADA WAS IMPRESSED BY THE GOVERNOR'S RESILIENCE BUT BELIEVED THAT WE WERE ALL LIKELY TO HAVE A BUMPY RIDE WITH CHINA OVER THE NEXT FEW YEARS DURING CHINA'S INTERNAL PERIOD OF TRANSITION.

4.

SATO (A FORMER CONSUL-GENERAL IN HONG KONG) ALSO REAFFIRMED JAPANESE BACKING FOR HONG KONG. BUT HE SAID THAT WHEN HE HAD FIRST READ THE GOVERNOR'S SPEECH, HE HAD BEEN SOMEWHAT CONCERNED THAT THE ISSUE OF POLITICAL DEMOCRACY HAD BEEN OVER-EMPHASISED. THE CORRECT BALANCE HAD TO BE STRUCK BETWEEN POLITICAL AND ECONOMIC FREEDOM. JAPANESE BUSINESSMEN COULD OTHERWISE BE DISCOURAGED. BUT IN THE END IT WAS FOR THE PEOPLE OF HONG KONG, PARTICULARLY THE YOUNG,

HKD 021/1

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JB

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