TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 99

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CONFIDENTIAL

TELELETTER

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FROM R J T MCLAREN, POLITICAL ADVISER HONG KONG FILE TS 7/1162/46 DATED 30 MARCH 1982 FOLLOWING FOR A E DONALD ESQ CMG FCO

COPIED TO

SIR P CRADOCK KCMG PEKING JS WHITEHEAD ESQ TOK YO

JAPANESE INTEREST IN THE FUTURE OF HONG KONG.

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1. JOHN WHITEHEAD SENT ME A COPY OF HIS TELELETTER OF 18 MARCH ABOUT THE JAPANESE ENQUIRY, DURING RECENT PLANNING TALKS, AS TO WHETHER THERE WAS ANYTHING WHICH JAPAN COULD DO DISCREETLY TO

HELP OVER THE FUTURE OF HONG KONG.

2. AS VIEWED FROM HERE, SUCH OFFERS SHOULD BE POLITELY NOTED BUT NOTHING SHOULD BE SAID WHICH MIGHT ENCOURAGE THE JAPANESE TO THINK THAT THEY ARE LIKELY TO BE TAKEN UP. THERE ARE ENOUGH WOULD-BE

INTERMEDIARIES IN HONG KONG WITHOUT GETTING FOREIGN GOVERNMENTS INVOLVED. THE RISK OF CONFUSION ARE OBVIOUS. WE COULD NOT CONTRO WHAT THE JAPANESE SAID AND THEY MIGHT BE UNABLE TO RESIST THE TEMPTATION TO CROSS THE BOUNDARY BETWEEN EXPLAINING THE PROBLEMS FACED BY JAPANESE INVESTORS AND SUGGESTING SOLUTIONS. MOREOVER, THE CHINESE WOULD BE UNLIKELY TO TAKE KINDLY TO WHAT THEY WOULD SEE AS JAPANESE INTERFERENCE IN A MATTER INVOLVING CHINESE SOVEREIGNTY. THEY MIGH WELL INTERPRET ANY APPROACH FROM THE JAPANESE, HOWEVER DISCREET, AS AN ATTEMPT TO PUT PRESSURE ON THEM AND WONDER WHAT WE WERE UP TO.

3. WE ACCEPT THAT THE SUBJECT OF HONG KONG COULD BE RAISED WHEN THE PRIME MINISTER VISITS JAP AN IN THE AUTUMN. IT WILL BE FOR MRS THATCHER TO DECIDE HOW MUCH SHE WISHES TO SAY ABOUT THE FUTURE. IN THE MEANTIME, IT IS OPEN TO THE JAPANESE CONSUL-GENERAL HERE TO ASK ME, OR THE CHIEF SECRETARY, TO EXPLAIN OUR GENERAL APPROACH TO THE PROBLEM. IT IS SIMILARLY OPEN TO THE JAPANESE AMBASSADOR TO TALK TO YOU. BUT WE SHOULD RESIST THE IDEA OF TALKS BETWEEN OFFICIALS FROM CAPITALS SPECIFICALLY DEVOTED TO THE SUBJECT

OF THE FUTURE.

SIGNED R J T MCLAREN