TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 27

CONFIDENTIAL

HAK 040/1

GR 160

CONFIDENTIAL

FM PEKING 080352Z APR 82

TO PRIORITY F C O

TELNO 210 OF 8 APRIL

INFO HONG KONG (PERSONAL FOR PA) AND TOKYO (PERSONAL FOR

WHITEHEAD).

FOR DONALD

161

이노

196

JAPANESE INTEREST IN THE FUTURE OF HONG KONG

See (188A,

1844

183

1. YOUR TELELETTER OF 5 APRIL CROSSED WITH MINE OF 2 APRIL.

2. WE SHOULD NOT BE SURPRISED THAT THIRD COUNTRIES WITH SUBSTANTIAL

INVESTMENTS AND COMMERCIAL AND OTHER INTERESTS IN HONG KONG ARE

SHOWING AN INTEREST IN THE FUTURE OF THE TERRITORY. THE JAPANESE

IN PARTICULAR COULD STAND TO LOSE A GREAT DEAL IF CONFIDENCE IN THE

TERRITORY WERE TO FAIL, AND CONVERSELY HONG KONG COULD SUFFER CATASTROPHICALLY IF THE JAPANESE WERE TO LOSE CONFIDENCE IN IT.

3. NO-ONE IS SUGGESTING INTERMEDIARIES, BUT IF THE JAPANESE EXPRESS

THEY THEIR CONCERN, AS ARE LIKELY TO DO IN ANY EVENT, I SEE BENEFIT RATHER THAN HARM. WE MUST ALSO TAKE THEM AT LEAST A LITTLE INTO OUR CONFIDENCE, AS YOU SUGGEST IN THE FIRST SENTENCE OF YOUR PARA 3.

3

CRADOCK

220

zzz

LIMITED HK&GD FED

COPIES TO:-

SIR E YOUDE 0/0 HK&GD

ROOM K245

MK GIFFARD MR DONALD

CONFIDENTIAL