TNAG-1872-FCO40-2660-Relations-between-Hong-Kong-and-China-1989 — Page 60

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PA SCR 67/6669

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Sino-Japanese Relations in Hong Kong

1.

Satoh, the Japanese Consul-General, telephoned to give

me some background information and commentary on the recent discussion between the Chinese and Japanese foreign ministers

during Premier Li Peng's visit to Tokyo. Satoh said that

when the two met on 15 April it had been the Chinese who raised

the subject of Hong Kong, noting that previously the Japanese

had expressed interest during a meeting of their respective

vice foreign ministers in March. The Chinese foreign minister

had not said much that was new but the Japanese had noted

particularly his remarks about the brain drain and what Minister

Qian saw as an outflow of money from Hong Kong. Qian had

emphasised that he was not concerned by this and believed

that both money and people would come back as confidence

re-established itself. Qian had underlined China's support

for Hong Kong as a financial and trade centre and hoped that

the Japanese would increase their investment there. In reply the Japanese foreign minister had responded very positively, recalling his visit to Hong Kong in 1988 when he had met the

Governor and giving his view that arrangements for the transfer of sovereignty were going smoothly. He promised to pass on

Qian's views on Japanese investment to Japanese businessmen.

2.

In comment, Satoh said that so far as the Japanese

could recall this was the first time that the Chinese had

taken the initiative in raising Hong Kong with them and they

saw it, on the whole,

the whole, as a helpful sign of Chinese interest.

Meanwhile the Japanese government would continue discreetly to encourage leading Japanese visitors, both official and

commercial, to take opportunities in conversation with the

Chinese leadership to stress their concern for the full

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