TNAG-1876-FCO40-2667-Relations-between-Hong-Kong-and-Japan-1989 — Page 119

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

HKB 020/13

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CONFIDENTIAL

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From: PS/Lord Glenart 2/5

Date: 25 April 1989

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Private Secretary PS/PUS

Mr Gillmore

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CALL ON LORD GLENARTHUR BY THE JAPANESE AMBASSADOR

1.

Mr Chiba, accompanied by Mr Fujisaki (Political Counsellor), called at his own request this morning.

RESIGNATION OF MR TAKESHITA

2. Chiba said that the news of Takeshita's resignation was not totally unexpected, given the disclosure of the loan he had accepted from Recruit Cosmos. Takeshita would stay on until the budget had been passed (probably before the "Golden Week" holiday, 29 April 5 May), and would go ahead with his scheduled ASEAN visit. Chiba said that he particularly regretted this turn of events because of the good rapport which Takeshita had struck up with Mrs Thatcher.

3. The succession was not known, but would certainly be only a caretaker appointment. It was reported that Mr Itoh, who was tipped as a successor, would not take the succession; he was an ill man. It was not clear if Takeshita's resignation would bring down the whole Cabinet, but further changes must be on the cards. At least the economy was performing well and there was no social unrest; and the strong Japanese bureaucracy would be able to manage things for a while.

LORD GLENARTHUR'S VISIT TO VIETNAM

4. Turning to the initial reason for the call, Lord Glenarthur briefed Chiba on his visit to Vietnam. He stressed the mixed signals given about prospects for Vietnamese economy; our continuing strong line on the need for complete Vietnamese withdrawal from Cambodia; and the pressure he had applied over Vietnamese Boat People. As for the Vietnamese proposal that we resume our 1954 Geneva Conference co-chairmanship role, we had not ruled it out, but were not

CONFIDENTIAL

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