TNAG-2127-FCO40-3037-Investment-in-Hong-Kong-1990 — Page 82

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 1907

OF 15125OZ OCTOBER 90

AND TO IMMEDIATE TOKYO

INFO ROUTINE BTC HONG KONG

CONFIDENTIAL

PERSONAL FOR ACTING GOVERNOR FROM PAUL, HKD

JAPANESE INVESTMENT IN HONG KONG

C/21/2/67

141233 MDHOÁN 9290

TOP COPY Q DIST?

thee_121/2

2 OCT 1990

1. I WAS STRUCK BY A COMMENT WHICH HENRY KESWICK MADE THE OTHER DAY TO THE EFFECT THAT THE JAPANESE WERE TAKING A GENERALLY VERY CAUTIOUS ATTITUDE TOWARDS HONG KONG'S FUTURE. I QUESTIONED THIS, POINTING OUT THAT THIS HARDLY SQUARED WITH THE GROWTH IN JAPANESE INVESTMENT IN RECENT YEARS. KESWICK DENIED THAT THIS WAS SO. THE JAPANESE WERE NOT INVESTING IN A BIG WAY. THEY WERE CERTAINLY NOT COMMITTING THEMSELVES SIGNIFICANTLY TO HONG KONG'S FUTURE. HE QUOTED THEIR RESERVED ATTITUDE TO PADS

AS AN EXAMPLE OF THIS.

2. HENRY KESWICK'S REMARKS ABOUT THE JAPANESE ATTITUDE TO PADS APPEAR TO BE BORNE OUT BY A COMMENT WHICH BARONESS DUNN MADE AT HER MEETING WITH LORD CAITHNESS ON 8 OCTOBER THAT ONE OF THE REASONS WHICH HAD LED EXCO TO FAVOUR THE DESIGN AND CONSTRUCT APPROACH TO THE LANTAU FIXED CROSSING WAS THE NEED TO RESTORE CONFIDENCE AMONG THE BUSINESS COMMUNITY, MANY OF WHOM, NOTABLY THE JAPANESE, NOW HAD DOUBTS ABOUT PADS.

3. GRATEFUL FOR (A) YOUR VIEWS (AND THOSE OF TOKYO) ON THE CURRENT ATTITUDE OF JAPANESE INVESTORS TO INVESTMENT IN HONG KONG (NOT JUST PADS), (B) THE LATEST AVAILABLE FIGURES FOR JAPANESE INVESTMENT IN HONG KONG (INCLUDING AN UPDATE OF THE USEFUL FIGURES QUOTED IN GOMERSALL'S LETTER OF 14 AUGUST 1989 TO CANNON).

4. IT WOULD BE HELPFUL TO HAVE THIS MATERIAL BY 22 OCTOBER IN PREPARATION FOR ROBIN MCLAREN'S VISIT TO TOKYO AT THE END OF

THIS MONTH WHERE HE WILL BE GIVING A TALK ABOUT HONG KONG'S

POLITICAL FUTURE TO A GROUP OF JAPANESE BUSINESSMEN AND BANKERS.

ONE OF HIS MAIN OBJECTIVES WILL BE TO PROMOTE JAPANESE

INVESTMENT IN HONG KONG.

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CONFIDENTIAL