REFERENCES
CONFIDENTIAL
A: Houston Summit Declaration on China
B: Peking Telno 1090: Mr Maude's Visit to China
C: Tokyo telno 185
D: UKDEL Houston telno 008: Secretary of State's bilateral with the
Japanese Foreign Minister
E: Note of meeting on 20 February between Mr McLaren and Mr Satoh,
Director General of the Information, Analysis, Research and
Planning Bureau at the Japanese Foreign Ministry.
F: List of PADS Contracts awarded and British interests.
G: BTC Hong Kong telegram Otter 184 on PADS competitors.
BACKGROUND
A
Sino-Japanese Relations
1.
We
In the run-up to the Houston Summit, and at the Summit itself,
Japan argued for a relaxation in the West's stance towards China.
They stressed the need not to isolate China, and the importance of
stability in China, as reasons for the West to relax its stance.
and the Japanese argued for a balanced mention of China in the
political declaration, giving weight to the positive signs there had
been in recent months from China (eg lifting of Martial Law in Peking and Lhasa, releases of detainees), and to give encouragement to those pressing for reform in China. The outcome however also
reflected the views of others, particularly France and Canada who
did not accept that positive changes had taken place. The Summit agreed to some further partial relaxation of World Bank lending to
China (it was agreed in January that the original suspension of new
World Bank lending should be modified to allow new lending for basic
human needs purposes.) But the other measures imposed by the 1989
Paris Summit (principally the suspension of ministerial and high
level visits and a ban on arms sales) remain in place.
2.
In part, the Japanese concern reflected their wish to go ahead
with their Third Yen Development Loan to China (US$5.4 billion)
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