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7. OWADA SAID HE WAS CLOSELY IN TOUCH WITH KIMMITT, WHO DID NOT BASICALLY DISAGREE WITH JAPANESE THINKING. BUT BAKER WAS VERY SENSITIVE TO CONGRESSIONAL OPINION. MCLAREN SAID THAT THE US ADMINISTRATION FELT THAT THEY HAD GONE OUT ON A LIMB, WITH LITTLE REWARD FROM CHINA. HEAVY-HANDED TREATMENT OF THE FOREIGN PRESS IN PEKING OVER THE JUNE ANNIVERSARIES HAD NOT HELPED THE CHINESE CAUSE. OWADA SAID THE JAPANESE HAD ENCOURAGED THE CHINESE TO TAKE MORE VISIBLE STEPS, EG OVER CAMBODIA, BUT THE CHINESE DOUBTED WHETHER THEY WOULD EVER BE ABLE TO DO ENOUGH TO SATISFY THE US. HE AGREED WITH MCLAREN THAT THE DELICATE POWER BALANCE WITHIN THE CHINESE LEADERSHIP WAS AN ADDITIONAL CONSTRAINT. NEVERTHELESS, WE HAD TO DO WHAT WE COULD WITHIN THE NARROW ROOM FOR MANOEUVRE THAT EXISTED.
8.
OWADA ASKED MCLAREN WHETHER IT WOULD BE USEFUL FOR THE JAPANESE TO EXPLAIN THEIR THINKING WITHIN THE EC. MCLAREN SUGGESTED THAT THEY SHOULD SPEAK TO THE FRENCH AND THE GERMANS, WHO FACED PUBLIC AND PARLIAMENTARY PRESSURES AGAINST UNRAVELLING THE MADRID AND PARIS UNEASURES. FOR OUR PART WE WOULD WISH TO BEKEPT IN TOUCH WITH JAPANESE VIEWS AS WE APPROACHED
HOUSTON.
HONG KONG.
9. MCLAREN TOOK THE OPPORTUNITY TO BRIEF OWADA ON DEVELOPMENTS IN HONG KONG. THERE HAD BEEN A GOOD DEAL OF PRESS CRITICISM OF UK POLICY SINCE TIANANMEN, MUCH OF IT BASED ON THE UNREALISTIC NOTION THAT CHINA AND CHINESE VIEWS COULD BE IGNORED IN THE PROCESS OF STRENGTHENING DEMOCRACY IN HONG KONG. BUT MINISTERS BELIEVED THAT THERE WAS NO POINT IN ERECTING STRUCTURES IN HONG KONG THAT WOULD BE DEMOLISHED AFTER 1997. WE WOULD DEVELOP DEMOCRATIC INSTITUTIONS AT A PACE THE CHINESE COULD LIVE WITH, LEAVING OPEN THE POSSIBILITY OF FURTHER PROGRESS AT A LATER STAGE. IN THE MEANTIME A MORE COOPERATIVE RELATIONSHIP WITH CHINA WAS NEEDED IF CONFIDENCE WAS TO BE RESTORED. MCLAREN THANKED OWADA FOR WHAT THE JAPANESE HAD SAID TO THE CHINESE ABOUT THE IMPORTANCE OF ATTRACTING INVESTMENT TO, AND MAINTAINING BUSINESS CONFIDENCE IN HONG KONG AS 1997 APPROACHED. HE HOPED THAT THE JAPANESE WOULD CONTINUE TO MAKE SUCH POINTS AS OPPORTUNITY OFFERED, PARTICULARLY OVER THE NEW
PORT AND AIRPORT DEVELOPMENT SCHEME,
ON WHICH THE CHINESE WERE SUSPICIOUS OF BRITISH INTENTIONS. OWADA SAID THAT THE JAPANESE WOULD CONTINUE TO DO SO. WE HAD A
COMMON INTEREST.
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