TNAG-1876-FCO40-2667-Relations-between-Hong-Kong-and-Japan-1989 — Page 112

MELAAU

CONFIDENTIAL

PRIME MINISTER'S VISIT TO JAPAN, 19-22 SEPTEMBER

HONG KONG

1.

The Prime Minister will wish to stress Hong Kong's importance

for Japanese interests and the need for the Japanese to do more

help us to restore confidence. It is very much in Japanese interests to see stability preserved in this part of the world and

to be able to use a stable and prosperous Hong Kong as a gateway to the most dynamic and affluent part of China. The Prime Minister may wish to say that one important contribution Japan could make is to maintain the level of Japanese investment and trade with Hong Kong,

on which the picture is generally reassuring, although some companies appear to have delayed investment decisions following the

recent events in China.

But

2. The Prime Minister may wish to point out that there are also steps which the Japanese Government could take to demonstrate its political support for Hong Kong. The Japanese have recently given us strong support over Hong Kong's inclusion in the Asia-Pacific

Economic Forum meeting in November and have been generally sympathetic on the Vietnamese boat people problem (see below) it would also be helpful if they could help to promote confidence by

making a positive public statement and by considering a Japanese

Ministerial visit to the territory. The Prime Minister may also

wish to express the hope that there will be progress in negotiating a separate Japan/Hong Kong air services agreement in talks due to begin in London on 9 October

CONFIDENTIAL