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4. On air services separation the MFA is in no doubt that this subject will not go away, although as you will have gathered from your meeting with Ono, they still face a major battle with MOT. The Head of the MFA's China Division is now in Peking where (he has told us) he will try to obtain messages which will overcome MOT's objections. We can consider next steps once we know how he gets on. But we should be grateful for further guidance from Hong Kong on the Chinese insistence at the JLG on seeing CMUS. This is exactly what is worrying the MOT, and we would find it useful to have more information on how you see the Chinese position.
5. On other political subjects you were able to register your thanks for Japan's assistance with VBP's in Hong Kong. There is clearly going to be a difficult road ahead at SC4 in February/ March next year and we will need to keep in touch with the Japanese to try to persuade them to use their influence positively with the United States. Mrs Ogata's impending appointment also increases Japan's profile on this issue. I have registered our concern with her (as did Lord Caithness when he was in Japan). She is well aware of it but not surprisingly at this stage, is keeping her own counsel.
6. You also asked for the Japanese to register their support for Hong Kong in their contacts with the Chinese.
In this you were, I think, only partially successful. Although the MFA's heart seems to be in the right place, it will be difficult to dislodge the continuing over-sensitivity to China from dominating their thinking. But we will keep up the effort.
7. I was not myself present at your 'economic' meetings. But the size and quality of the turnout for your speech and the publicity for your visit will have helped reassure opinion here on the prospects for Hong Kong. Detailed follow up on these points will be for your ETO and TDC. We will however continue to make the broader points about the importance of economic links including investment and also (as appropriate) the value of Hong Kong's independent membership of GATT and other international organisations. Incidentally, I do not at present see anything for us to do on APEC but by all means let me know if the position changes.
8.
Finally, I will be sending under separate cover some thoughts on ETO's status (as you requested): I would, however, prefer to clear lines with Mr Lee here before I do so.
9.
A useful visit; and it was good to see you all here.
cc:
RJT McLaren Esq CMG
DUSS, FCO
You's
ever
John
John Whitehead
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