TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 48

WF TL 30/5

LDX 8290

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LDX 329

LIN 011

PEKING TL 770

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04011

- 7 APR1982

HONG

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183

GRS 250

CONFIDENTIAL

TELELETTER

FROM: HMA PEKING

FILE REF 020/393/2

FOLLOWING FOR:

2 APRIL 1982

A E DONALD ESO, CHG, FCO

3 JT MCLAREN ESO, HONG KONG (PERSONAL)

J S WHITEHEAD ESQ, TOKYO

JAPANESE INTEREST. THE FUTURE OF HONG KONG

1.

See (184)

196

CASA

220

I AGREE WITH JOHN WHITEHEAD THAT IT WOULD BE USEFUL FOR US

TO KEEP THE JAPANESE GENERALLY IN TOUCH WITH OUR VIEW OF DEVELOP-

MENTS CONCERNING THE FUTURE OF HONG KONG: IN THIS WE SHOULD STEER

CLEAR OF ANYTHING PARTICULARLY SENSITIVE.

2. IN MY VIEW, WE SHOULD BE READY TO TREAT THE JAPANESE IN MUCH THE SAME WAY AS OUR MAJOR ALLIES WITH SUBSTANTIAL INTERESTS IN

HONG KONG, EG THE US AND AUSTRALIA. IT WOULD BE HELPFUL TO US IF THE JAPANESE WERE TO INDICATE TO THE CHINESE DURING SOME OF

THEIR TOP LEVEL BILATERAL MEETINGS THAT JAPAN IS ALSO INTERESTED IN THE CONTINUED PROSPERITY OF HONG KONG. AS SEEN FROM HERE, THE JAPANESE WOULD PROBABLY WISH TO SPEAK ABOUT THIS TO THE CHINESE AT SOME STAGE IN ANY CASE. IT WOULD BE BETTER IF THEY SPOKE ON A RELATIVELY WELL-INFORMED DASIS.

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3. I AGREE WITH ROBIN MCLAREN (PARA 2 OF HIS TELELETTER OF 30 MARCH) THAT THE CHINESE MAY WELL SUSPECT THAT WE ARE BEHIND ANY JAPANESE DEMARCHE. WE SHOULD DO OUR BEST TO AVERT SUCH SUSPICIONS:

WE MIGHT NOT BE SUCCESSFUL., BUT THIS WOULD NOT BE DISASTROUS.

IT IS WORTH RECALLING IN THIS CONTEXT THAT LI XIANNIAN EXPLICITLY

RECOGNISED THE INTERESTS OF OTHER OVERSEAS INVESTORS IN HONG

KONG WHEN HE SPOKE TO AUSTRALIAN PARLIAMENTARIANS HERE LAST JULY

(PEKING TELNO 502 OF 1981 (NOT TO ALL), AND MY LETTER OF 17 JUNE 1981 TO SIR E YOUDE ARE BOTH RELEVANT).

YOU DE

нки охол

(160) 1931

SIGNED PERCY CRADOCK

HACIE 040/1 1981

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