TNAG-1302-FCO40-1658-Visits-by-Richard-Luce--Minister-of-State-for-Foreign-and-Co-1984 — Page 20

CONFIDENTIAL

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Mr Abe confirmed that he had seen Sir G Howe in New York.

They had discussed the Hong Kong agreement. He had told him that Japan had welcomed the agreement and greatly appreciated the efforts of both sides in reaching it. He understood that

Mr Luce himself had made an important contribution.

5. Mr Luce said that he was grateful for Mr Abe's remarks.

The British team had of course been led by the Secretary of

State, with support from professional diplomats. He had been struck by the degree of interest in Japan in the agreement. The UK appreciated the welcome the Japanese government had given it and hoped that there would now be a new atmosphere of confidence in Hong Kong and further Japanese investment there.

6. Mr Abe remarked that, during the UK-China negotiations, many Japanese businessmen had asked him for his views on what would

emerge and whether foreign commercial interests would be pro-

tected. He had told them that the UK and China were conducting serious and business-like negotiations with the objective of maintaining Hong Kong's prosperity, and that they should stay

calm. The UK and China had now reached an agreement which could

be expected to secure Hong Kong's prosperity, and he therefore

felt his prediction had been borne out.

7.

Mr Luce added that he believed Japan's own strengthening relations with China could be helpful to the Hong Kong agreement. Japan would be in a position to influence China to keep within the spirit, as well as the letter, of the agreement.

8. Mr Luce said he would like to pose a question on the Middle

East. He had been impressed by Mr Abe's proposals in New York

on

ending the Iran-Iraq conflict. He had since read about the

Iranian reaction. He would be grateful to hear Mr Abe's opinion

on whether there was any prospect of movement by either side

towards a solution.

CONFIDENTIAL

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