TNAG-2223-FCO40-3194-Political-relations-between-Hong-Kong-and-Japan-1991 — Page 30

RESTRICTED

FM TOKYO

TO DESKBY 12080OZ F C O

TELNO 474

OF 12053OZ JUNE 91

RESTRICTED

Pa

25

143635

MDHIAN 0850

MKB 02012;

New inter not alo

FOR FED AND BURNS AUSS

1.

YOUR TELNO 378: FORTHCOMING VISIT TO UK OF PRIME MINISTER KAIFU

ALTHOUGH KAIFU MAY BE NEARING THE END OF HIS TERM OF OFFICE HE WILL WANT TO ESTABLISH GOOD PERSONAL RELATIONS WITH THE PRIME MINISTER AND BE SEEN TO HAVE SET THE SEAL ON TWO YEARS OF EXCELLENT BILATERAL RELATIONS. THE JAPANESE WILL THEREFORE BE KEEN TO MAKE THE BILATERAL MEETING A SUCCESS. IT SHOULD ALSO BE SEEN IN TH E CONTEXT OF A SUMMIT AT WHICH KAIFU WILL BE UNDER DOMESTIC PRESSURE TO SPEAK UP FOR JAPAN AND TO SHOW THAT JAPAN HAS IDEAS AND

INITIATIVES.

2.

OUR OWN AGENDA FOR THE BILATERAL WOULD RUN ON THE FOLLOWING

LINES:

A) UK/JAPAN RELATIONS. IT WILL BE IMPORTANT FOR THE PRIME MINISTER TO REAFFIRM HIS PERSONAL COMMITMENT TO THE BILATERAL RELATIONSHIP. SPECIFIC POINTS WHERE WE HAVE HELPEDF JAPAN INCLUDE OUR WELCOME FOR INWARD INVESTMENT AND OUR STRONG LINE WITHIN THE EC ON CARS POST

DEPENDING ON THE SITUATION REACHED BY MID-JULY, WE SHALL PROBABLY WISH THE PRIME MINISTER TO RAISE 'BIG-TICKET' SALES, BUT WITHOUT EXCESSIVE PUBLICITY. THESE ARE CENTRAL TO OUR EXPORT PROMOTION CAMPAIGN BUT ALSO RAISE THE MORE GENERAL ISSUE OF THE JAPANESE TENDENCY TO FAVOUR THE US FOR POLITICAL REASONS AT EUROPEAN EXPENSE. THE GROWING BILATERALISM IN US-JAPAN TRADE RELATIONS IS A MATTER FOR CONCERN, DESPITE PROTESTATIONS BY BOTH PARTIES THAT BENEFITS WILL BE EXTENDED TO EUROPE. (SEE ALSO THE FT LEADER OF 10 JUNE ON ASSAULT ON JAPAN'').

B) CHINA/HONG KONG. WE THINK THAT WE SHOULD FOLLOW UP NAKAYAMA'S COMMITMENT TO DO MORE FOR HONG KONG'S FUTURE. WE SHOULD AIM FOR BOTH A GOOD PUBLIC STATEMENT FROM THE BILATERAL AND FOR MORE SPECIFIC JAPANESE ACTION WITH THE CHINESE ON KEY POLITICAL ISSUES IN THE CONTEXT OF KAIFU'S PLANNED VISIT TO CHINA IN MID-AUGUST. BACKGROUND (NOT FOR DIRECT QUOTATION TO KITAMURA) I RAISED THIS POINT WITH HASHIMOTO (FINANCE MINISTER) LAST WEEK. HE LAUNCHED

1

PAGE RESTRICTED

AS

Page 30Page 31