CONFIDENTIAL
011017
MDLIAN 4793
STOCK EXCHANGE. WE PROMISED FURTHER DETAILED MATERIAL, BUT SUGGESTED THAT THESE FACTS ALONE SUGGESTED THE LIKELIHOOD WAS THAT ONLY ABOUT 2 OR 3 PERCENT OF ALL HONG KONG COMPANIES WOULD BE COVERED UNDER THE JAPANESE DEFINITION.
6. WE DREW ATTENTION TO THE BIZARRE EFFECT THAT THE THREE YEARS' SERVICE QUALIFICATION COULD HAVE. IN GENERAL, PEOPLE CHANGED JOBS IN HONG KONG MUCH MORE FREQUENTLY THAN THEY DID IN JAPAN. BUT EVEN SOMEONE WHO HAD WORKED FOR SWIRES FOR TEN YEARS BEFORE MOVING TO JARDINES LAST YEAR WOULD NOT QUALIFY. THIS WOULD CREATE A PECULIAR SITUATION.
1
7. WE ASKED FOR CLARIFICATION ON WHAT THE JAPANESE GOVERNMENT INTENDED BY PROPOSING TO DELETE THE WORDS ''HONG KONG' "SINGAPORE'' AND 'FEDERATION OF MALAYA'' FROM THE 1957 UK/JAPAN AGREEMENT. FIRSTLY, WHY DELETE SINGAPORE' AND 'FEDERATION OF MALAYA'' IN THE CONTEXT OF AN ARRANGEMENT OF HONG KONG? SECONDLY, DID THE JAPANESE GOVERNMENT BELIEVE THAT DELETING THE WORDS 'HONG KONG'' WOULD HAVE ANY PRACTICAL EFFECT, IN PARTICULAR ON THE HOLDERS OF BN (0) PASSPORTS AFTER 1997? WE MADE IT CLEAR THAT WE BELIEVED DELETING THE WORDS WOULD MAKE NO PRACTICAL DIFFERENCE WHATSOEVER AND IT WAS ON THIS BASIS THAT WE HAD EARLIER INDICATED A WILLINGNESS TO CONSIDER THEIR DELETION.
8. SEKI DID NOT HAVE MUCH TO SAY IN REPLY. AFTER CLARIFYING ONE OR TWO POINTS, HE UNDERTOOK TO CONSUL TOKYO AND REVERT.
WILSON
YYYY
MAIN
57
DISTRIBUTION
60
.HONG KONG AGREEMENT
.(RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH D (FE)
PUSD
NEWS D
PS/MR MAUDE
PS/LORD BRABAZON MR GILLMORE
MR MCLAREN
PAGE
2
CONFIDENTIAL
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