TNAG-1982-FCO40-2815-Cultural-agreement-between-Hong-Kong-and-Japan-1989 — Page 29

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FM HONG KONG

TO IMMEDIATE FCO

TELNO 3371

OF 11074OZ OCTOBER 89

INFO IMMEDIATE PEKING, TOKYO

HONG KONG/JAPAN CULTURAL AGREEMENT

STAT

THE ABOVE AGREEMENT WAS SIGNED IN DECEMBER 1987 UNDER AN ENTRUSTMENT FROM THE SECRETARY FOR STATE. (PIERCE'S LETTER OF 24 SEPTEMBER 1989 TO PAUL REFERS). UNDER THE AGREEMENT THE HK UNIVERSITY WAS PAID AROUND HKD 2 MILLION TO DEVELOP

THEIR JAPANESE STUDIES PROGRAMME.

2. THE JAPANESE NOW WISH TO REPEAT THE EXERCISE WITH THE CHINESE UNIVERSITY. WE ARE NATURALLY IN FAVOUR OF THIS. THEY HAVE SUBMITTED A DRAFT NOTE FOR THE PURPOSE WHICH IS MATERIALLY THE SAME AS THAT USED PREVIOUSLY BUT WITH TWO DIFFERENCES:

A) THE PROVISION TO EXTEND THE AGREEMENT IF NECESSARY HAS

BEEN LEFT OUR: AND

B)

A CLAUSE STIPULATING FAIR AND FREE COMPETION FOR SHIPPING

AND MARINE INSURANCE HAS BEEN ADDED.

3. THESE POINTS HAVE BEEN TAKEN UP WITH THE JAPANESE. THEY SAY THAT THERE CAN BE NO EXTENSION SINCE THE MONEY IS COMING FROM THE 1988 BUDGET AND HAS TO BE SPENT BY MARCH 1990. THE CLAUSE ON SHIPPING AND MARINE INSURANCE HAS BEEN ADDED TO (NEXT WORD UNDERLINED) ALL INTERNATIONAL AGREEMENTS BY THE JAPANESE GOVERNMENT. COPIES OF THE DRAFT JAPANESE AND HONG KONG NOTES ARE BEING FAXED TO STONE IN HKD. WE ASSUME THAT THE ENTRUSTMENT SIGNED BY THE SECRETARY FOR STATE DATED 12 OCTOBER

1987 ON CULTURAL MATTERS STILL STANDS.

4. WE WILL, AS WE DID LAST TIME, SIGN A SEPARATE MEMORANDUM OF UNDERSTANDING WITH THE CHINESE UNIVERSITY TO MAKE IT CLEAR THAT THE UNIVERSITY WILL BE RESPONSIBLE FOR FULFILLING THE

OBLIGATIONS UNDER CLAUSES 4 AND 5 OF THE AGREEMENT.

5. WHEN EXCO CONSIDERED THE FIRST AGREEMENT THEY AGREED THAT

IT SHOULD BE CONCLUDED BUT ASKED THAT THEY BE CONSULTED AGAIN

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