Yis
CONFIDENTIAL
bilateral discussion of such issues with countries like Britain. Over time I believe that there are strong arguments for developing the Summit Seven or a similar group into a more regular channel of coordination so as to bind the Japanese even more firmly into Western counsels. For the moment the key point is the strength of our desire to develop the "dynamic, plain-speaking dialogue" to which former British and Japanese Foreign Ministers committed themselves. It is through this that we can try to persuade the Japanese to share our views, whether it be of East-West relations (they are tough), Southern Africa (more wobbly) or Cambodia (ready to pick up quite a lot of the bill).
13. A particular British concern is Hong Kong, and I hope that the Prime Minister will beat the drum rather strongly on the importance of Hong Kong for Japanese interests and the need for them to do more to help us maintain its stability. This principally means maintaining the level of Japanese investment and trade, on which the picture is generally reassuring so far although some companies appear to have delayed investment decisions after the recent incidents in China. There are also steps which the Japanese Government could take to demonstrate its political support for Hong Kong. They have already donated $11 million to help with the Vietnamese boat people and have generally been sympathetic on this.problem. On a couple of issues where they have sensed possible problems with China however, the record is less good. The Prime Minister's talks with Kaifu offer us an opportunity to raise the question of support for Hong Kong at the highest level (we have started to till the ground at high levels in the Japanese bureaucracy and have met with a not unsympathetic approach - not surprisingly, since in many respects it is very much in Japan's own interest to see stability preserved in this part of the world and to use Hong Kong as a gateway to the most dynamic and affluent part of China). More specifically, we could aim for a positive public statement, for serious consideration eg of a Japanese Ministerial visit to demonstrate confidence, and for a more positive response on one or two specific points such as holding early talks on a separate Japan/Hong Kong aviation agreement.
CC:
D H Gillmore Esq CMG DUSS, FCO
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John Whitehead
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