TNAG-1876-FCO40-2667-Relations-between-Hong-Kong-and-Japan-1989 — Page 14

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MDHIAN 07

4.

PRACTICALITIES INVOLVED IN IMPLEMENTING THE THIRD YEN CREDIT OF YEN 810 BILLION (OFFERED BY TAKESHITA IN AUGUST 1988).

I NOTED THAT, ALTHOUGH CIRCUMSTANCES WERE DIFFERENT, RECENT EVENTS IN ROMANIA HAD IF ANYTHING INCREASED CHINA'S POLITICAL ISOLATION. ALTHOUGH THE MFA CLEARLY WANTED IMPROVED RELATIONS WAS THIS VIEW SHARED AMONG THE MEDIA OR POLITICIANS? HOW WOULD THE YEN LOAN HELP IMPROVE THE POLITICAL SITUATION IN CHINA CAPART FROM SIMPLY MOLLIFYING THE HARD-LINERS)? TANINO UNDERLINED THE NEED NOT TO PUSH CHINA BACK IN ITS SHELL CA POINT STRONGLY EMPHASIZED BY KWIZAME AND TANINO WHEN GILLMORE WAS HERE EARLIER THIS MONTH). THERE HAD BEEN A PAINSTAKING WESTERN EFFORT OVER THE PAST 15 YEARS TO THAW THE PREVIOUS FREEZE. THIS SHOULD NOT BE

WASTED.

HONG KONG

5.

TANINO EMPHASISED JAPANESE WILLINGNESS TO HELP IMPROVE CONFIDENCE IN HONG KONG ON USUAL LINES. IT WAS NOW APPROPRIATE TO RESUME AIR SEPARATION TALKS. THE MOT WERE STILL OBDURATE BUT HE HOPED THEY WOULD BE BROUGHT ROUND WITHIN THE NEXT FEW DAYS. JAPAN WOULD NOT HOWEVER BE ABLE TO HELP WITH THE SPECIFIC MEASURES OF INTRODUCING AN ASSURANCE SCHEME (YOUR TELNO 2364 TO WASHINGTON). PASSPORTS COULD NOT BE GIVEN TO NON-JAPANESE CITIZENS NATIONALITY WAS AN EMOTIONAL AND IMPORTANT ISSUE IN JAPAN.

IT WOULD BE BETTER IF MRS THATCHER DID NOT RAISE THIS IN

TERMS SINCE KAIFU WOULD HAVE TO REFUSE.

6.

-

I UNDERLINED THE IMPORTANCE OF EARLY RESUMPTION OF AIR SEPARATION TALKS (YOUR TELNO 1008 NOT TO WASHINGTON OR PEKING). IF DATES COULD BE AGREED BEFORE PRIME MINISTERS

MET THE ATMOSPHERE FOR OTHER TOPICS COULD ALSO BE IMPROVED. I ALSO DREW ATTENTION TO THE CONTINUING DIFFICULTY WE FACED

WITH MOT ON IMPROVING ACCESS BY HONG KONG CARRIERS TO

JAPANESE REGIONAL DESTINATIONS. I UNDERSTOOD THE PARTICULAR DIFFICULTIES THAT THE PROVISION OF PASSPORTS TO HONG KONG

RESIDENTS WOULD POSE FOR JAPAN. WE WERE NOT LOOKING FOR

THEM TO BE FIRST IN LINE BUT THE MORE OTHER COUNTRIES THAT

COULD BE ASSOCIATED WITH A PACKAGE OF ASSURANCES (OF VARIOUS KINDS) THE BETTER WOULD BE THE PROSPECTS FOR HONG KONG CAND

THUS THE LESS THE LIKELIHOOD THAT ASSURANCES WOULD NEED TO BE CALLED IN). I EMPHASIZED IN THIS PART OF THE CONVERSATION

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