TNAG-2016-FCO40-2871-Relations-between-Hong-Kong-and-Japan-1990 — Page 259

CONFIDENTIAL

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MDHIAN 0787

THAT, WHILE WE APPRECIATED FOREIGN MINISTER NAKAYAMA'S VISIT IN NOVEMBER AND CONTINUING JAPANESE INVESTMENT IN HONG KONG, IT WAS IMPORTANT THAT KAIFU SHOULD HAVE MORE SPECIFIC

HELPFUL MOVES TO OFFER OVER HONG KONG WHEN HE VISITED LONDON.

OTHERWISE THERE WAS A STRONG POSSIBILITY THAT THE PRIME MINISTER WOULD COMPLAIN THAT OVER AIR SERVICES GENERALLY THERE HAD BEEN NO MOVEMENT WHATSOEVER ON THE JAPANESE SIDE SINCE THE TWO PRIME MINISTERS MET IN SEPTEMBER. ΤΑΝΙΝΟ SAW THE FORCE OF THIS PARTICULARLY IN THE CONTEXT OF A

GENERAL DISCUSSION ON CHINA AND HONG KONG IN WHICH THE

JAPANESE WERE IN EFFECT THE DEMANDEURS.

COMMENT

·

7. THE JAPANESE MFA WOULD CLEARLY LIKE IMPROVED RELATIONS

WITH CHINA AND ARE HOPING FOR UNDERSTANDING OF, EVEN IF NOT

FULL AGREEMENT WITH, THEIR PROPOSED MOVES. WE WILL TOUCH BASE WITH MFA NEXT WEEK ON AIR SEPARATION TALKS (AFTER THE EXTENDED JAPANESE NEW YEAR HOLIDAY). ON PASSPORTS, HOWEVER, TANINO HAS CORRECTLY HIGHLIGHTED THE NEURALGIA. I BELIEVE

IT WOULD BE COUNTERPRODUCTIVE TO OUR MORE GENERAL OBJECTIVES

OF ENGAGING JAPAN IN HONG KONG FOR THIS ISSUE TO BE GIVEN

PROMINENCE AT THE PRIME MINISTERS TALKS. BUT MORE GENERALLY I WOULD SUGGEST THAT WE HAVE AN OPPORTUNITY ON OTHER HONG FRONTS TO EXERT SOME LEVERAGE ON THE JAPANESE AT A TIME WHEN THEY ARE HOPING FOR OUR TACIT UNDERSTANDING OF THEIR

ACTIONS OVER CHINA SINCE THEY HAVE TAKEN AN UNCRITICAL LINE OVER OUR REPATRIATION OF VIETNAMESE BOAT PEOPLE AND

ARE ALSO CONTINUING TO PROVIDE FINANCIAL ASSISTANCE TO UNHCR THIS SUGGESTS THAT WE SHOULD FOCUS NOT ONLY ON AIR SEPARATION

TALKS BUT POSSIBLY ALSO ON OUR REGIONAL AIR DEMANDS INCLUDING CATHAY PACIFIC'S WISH TO FLY TO SAPPORO. THERE IS, HOWEVER, A LIMIT TO THE PRESSURE THAT WE CAN EFFECTIVELY BRING TO BEAR SINCE MY IMPRESSION IS THAT THE JAPANESE GOVERNMENT HAVE NOW CONVINCED THEMSELVES THAT THE COMBINATION OF SOME WARMING OF POLITICAL RELATIONS WITH THE CHINESE COUPLED WITH JAPANESE BUSINESS INTERESTS ARE NOT ONLY GOOD FOR JAPAN BUT ALSO NECESSARY TO AVOID A CERTAIN ISOLATION OF CHINA AND A POTENTIAL INCREASE OF INSTABILITY IN EAST ASIA. THEY WILL THEREFORE INCH THIS WAY WHETHER WE LIKE IT OR NOT.

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