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PRIME MINISTER'S MESSAGE TO CHANCELLOR KHOL

Dr B-Smith

146

My draft (gering a bit wider then China). Is it OK? Please ask

HKD to amend the last bit.

GIM219.

Mas Bened Jones.

Aste Jenkin

Stold

Meanwhile I am conscious of the growing economic importance of East Asia and the consequences that is having for the conduct of world his us

affairs.

FED

ore.

Japan, which you visited earlier this year and which I am on the point of visiting, is already a global power and is now undergoing a fascinating political transition. China too is changing very fast, with economic growth of over 8% a year since 1978 but so far no reform of its political systems to match the economic reform. I think it important als that Western countries should keep in close contact on our policy towards China in this phase. We of course face particular problems in the context of Hong Kong. I have heard that you yourself may visit China this autumn. We should very much like to brief you on our Hong Kong negotiations beforehand: it has often been useful for third parties to remind the Chinese privately of their interest in Hong Kong's continued prosperity and maintenance of the rule of law there.

MUD

RECEIVE

INDE

021/4

-7 SEP 1993

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