CONFIDENTIAL
needs contact. China's cooperation over Cambodia also notable.
3.
No consensus yet within the EC Twelve for our views on need for
further relaxation of EC measures. Some believe there has been no
improvement in human rights situation in China that would justify
such a relaxation.
4.
Will continue to argue the case. Likely to be further
discussion following Troika's meeting with Chinese Foreign Minister
at UNGA.
5.
But should be clear that further contact with China will
continue to involve blunt speaking on human rights. still
considerable concern about Chinese performance.
6.
Francis Maude's visit to China in July went as well as to be expected. Frank talking on both sides but tone was friendly. No
specific break-throughs. But none expected. Hope that it will lead to improvement in atmosphere for discussions, eg over Hong Kong. But time will tell.
7. How does Japan see its own relations with China developing in the coming months? What progress on going ahead with Third Yen Loan?
Japanese views on reform prospects?
Hong Kong: International Support
8. Grateful to Japanese for the action they have taken with the
Chinese emphasising the importance of Hong Kong as a regional and international economic centre and maintaining this status up to 1997 and beyond.
Japanese Investment in Hong Kong
9.
Grateful for Japanese Government's continuing encouragement of (Japanese) businessmen to invest in Hong Kong.
10.
Grateful also for your taking suitable opportunities to explain to the Chinese the importance of Japan's economic stake in Hong
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