CONFIDENTIAL
ong Kong remains as vibrant and active as ever and, judging by the rate that new capital works are proceeding, it doesn't seem that there is any damaging lack of confidence yet. I came across two people who are investing in new projects where they anticipate getting their money back in 18 years. However, 1997 figures in most conversations.
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In Korea, after useful and friendly talks with the Foreign Minister, I was received by President Chun who spoke warmly of the good relations between the UK and the Republic of Korea, extending from the material help we afforded during the Korean war to more recent diplomatic help in the Republic's difficult relations with North Korea. was briefed by the Commander-in-Chief of the UN Force (a particularly impressive General). The Americans and South Koreans would not expect more than half a day's warning if there were an assault from the north. With 780,000 troops in an offensive deployment just north of the 38th Parallel, the threat remains uncomfortably real.
Politically, I think we can expect the internal situation to be reasonably stable for a few years (unless someone shoots the President). The upheavals of the last 18 months have subsided and the general mood is that the new team should be allowed to get on with it in peace.
In Japan the new Foreign Minister gave me an hour of his time for talks and also hosted a dinner in my honour. He told me that he hopes to visit London, possibly just before the next Economic Summit of the Seven, and looks forward to meeting you then. He is agreeable and courteous and looks exactly like Yul Brunner. I don't think he knows much about Foreign Affairs yet, but no doubt he will learn. Once again in the political talks there was a wide measure of common ground. I mentioned our trading problem with Japan, both to the Foreign Minister and the Finance Minister but without dwelling on it too much since John Biffen will be visiting shortly. I don't think they fully realise how strongly we and the EC feel and will need a lot of pushing.
I saw something of local industry (electronics) and met a number of senior political figures. Japan struck me as a formidably dedicated and disciplined society. While they obviously want to be regarded as part of the Western world, there are considerable obstacles still to getting them to see the connection between their economic and political policies and the need for 'give and take' in developing a mature relationship with the West.
The pace of the tour was fairly hot but I am grateful for the opportunity of seeing in a relatively short space of time a great deal of my parish. My visits also helped to confirm the good relations between us and the three countries. The absence of any fundamental disagreements on policy issues (with the exception of Japanese-commercial practices!) was very striking. But it was interesting just how much all three countries are preoccupied with the Soviet Union, albeit in slightly different forms.
22 January 1982
CONFIDENTIAL
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