TNAG-2127-FCO40-3037-Investment-in-Hong-Kong-1990 — Page 69

JONFIDENTIAL

FM TOKYO

(AMENDED DISTRIBUTION)

TO IMEDIATE FCO

TELN 787

OF 101435Z SEPTEMBER 90

pe. Japanl

INFO PRIORITY WASHINGTON, UKREP BRUSSELS, ROME, BONN INFO PRIORITY PARIS, HONG KONG, PEKING

FOLLOWING FROM PRIVATE SECRETARY

MIPTS: SECRETARY OF STATE'S TALKS WITH THE JAPANESE FOREIGN MINISTER : CHINA/HONG KONG

1.

auf

China

NAKAYAMA SAID THAT AFTER THE HOUSTON SUMMIT HE HAD SENT THE DEPUTY MINISTER TO CHINA TO EXPLAIN JAPANESE VIEWS. HE CONFIRMED TO THE SECRETARY OF STATE THAT ALL JAPANESE YEN LOANS TO CHINA WERE UNTIED AND THEREFORE THE PROJECTS FUNDED WERE OPEN TO BIDS FROM ALL COUNTRIES.

2.

NAKAYAMA SAID THAT THE PROSPERITY OF HONG KONG WAS IMPORTANT TO THE INTERNATIONAL COMMUNITY AND THE JAPANESE HAD A STRONG INTEREST IN THE WARINESS OF THE HONG KONG BUSINESS COMMUNITY OVER 1997. THE BRAZILIAN FOREIGN

MINISTER HAD TOLD HIM OF THE NUMBER OF HONG KONG IMMIGRANTS TO BRAZIL.

3. THE SECRETARY OF STATE THOUGHT THAT JAPANESE AND UK APPROACHES TO CHINA WERE SIMILAR. HE HAD UNDERSTOOD THE JAPANESE DECISION TO SEND A DEPUTY MINISTER TO PEKING. WE HAD DONE THE SAME AND MR MAUDE'S VISIT HAD BEEN A SUCCESS. HE HAD NOT SHIRKED RAISED HUMAN RIGHTS. THE UK WAS WORKING FROM WITHIN THE EC TO RELAX COMMERCIAL CONTACTS WITH CHINA. SOME OTHER EC MEMBERS WERE RELUCTANT. BUT THE UK POINT OF VIEW WAS MAKING PROGRESS.

4 =

ON HONG KONG THE UK HAD TO STRIKE A DIFFERENT BALANCE, ON THE ONE HAND HONOURING THE BILATERAL AGREEMENT WITH CHINA AND KEEPING CHINA'S COMMENTS ABOUT HONG KONG LOW KEY, AND, ON THE OTHER HAND, REASSURING HONG KONG, FOR EXAMPLE BY INTRODUCING SOME DEMOCRATIC ELECTIONS IN 1991. SOME REASSURANCE SEEMED TO HAVE GOT THROUGH AND THE ATMOSPHERE IN HONG KONG WAS LESS FEVERISH THAN A YEAR EARLIER.

5. THE SECRETARY OF STATE WAS GRATEFUL TO NAKAYAMA FOR HIS PERSONAL SUPPORT FOR JAPANESE INVESTMENT IN HONG KONG. THE NEW AIRPORT AND THE NEW FIXED LINK WERE IMPORTANT POLITICALLY AND ECONOMICALLY AND THE SECRETARY OF STATE HOPED THAT THE ANGLO/JAPANESE CONSORTIUM WHICH WAS BEING PUT TOGETHER WOULD SUCCEED IN MAKING A BID. HE URGED NAKAYAMA TO GIVE WHAT ENCOURAGEMENT HE COULD TO THE CONSORTIUM.

WHITEHEAD

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ADVANCE

HK AGREEMENT

PS

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HD/COMED

HD/ECD

(E)

HD/ECD (I)

58

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