TNAG-2223-FCO40-3194-Political-relations-between-Hong-Kong-and-Japan-1991 — Page 62

HONG KONG.

CONFIDENTIAL

056464

MDHI

0945-

5. THE SECRETARY OF STATE SAID THAT PRACTICAL WORK TOWARDS FULFILLING THE JOINT DECLARATION WAS PROCEEDING VERY SLOWLY. IN AN EFFORT TO OVERCOME THIS, HE HAD PUT TO THE CHINESE A THREE-POINT PROPOSITION INVOLVING ACCELERATION OF WORK IN THE JLG: AGREEMENT ON THE NEW AIRPORT AND MEETING ALL CHINESE CONCERNS THAT THE EXPENSE OF THE AIRPORT COULD PUT THE FINANCIAL STABILITY

OF HONG KONG AT RISK. THERE HAD BEEN SOME GOOD PROGRESS BUT NO

AGREEMENT HAD YET BEEN REACHED.

6.

NAKAYAMA SAID THAT HE WELL UNDERSTOOD THE DIFFICULTY. JAPANESE INVESTMENT IN HONG KONG WAS ON THE INCREASE AND THE FINANCIAL STABILITY OF HONG KONG WAS CRUCIAL. A HEALTHY HONG KONG WOULD CONTRIBUTE TO THE ECONOMIC OPENING UP OF CHINA AND JAPAN INTENDED TO STRENGTHEN ITS ECONOMIC RELATIONS WITH HONG KONG. ALTHOUGH THE LEGAL FRAMEWORK FOR POST-1997 WAS ESTABLISHED BY THE JOINT DECLARATION AND THE BASIC LAW, NAKAYAMA WAS NOT CERTAIN THAT CHINA INTENDED TO MAINTAIN THAT FRAMEWORK AFTER 1997. HE INTENDED TO ENCOURAGE THE CHINESE TO EXPRESS THEIR INTENTION TO DO SO. HE BELIEVED THAT JAPAN SHARED SOME RESPONSIBILITY FOR THE STABILITY OF HONG KONG IN THE FUTURE. IF THERE WAS TURMOIL IN HONG KONG AFTER 1997, THAT WOULD AFFECT THE WHOLE OF SOUTH EAST ASIA. NAKAYAMA SAID THAT THE ENHANCEMENT OF AIR TRAFFIC BETWEEN HONG KONG AND JAPAN WAS IMPORTANT AND JAPAN PLANNED TO HOLD TALKS WITH THE CHINESE ON HONG KONG ASAS SOON. HE WOULD LET US KNOW

WHEN A DATE WAS FIXED.

7. THE SECRETARY OF STATE SAID THAT ANYTHING NAKAYAMA COULD DO TO EXPRESS JAPANESE VIEWS ON HONG KONG TO THE CHINESE WOULD BE VERY WELCOME. HE POINTED OUT THAT, UNDER THE JOINT DECLARATION, THE CHINESE HAD AN OPPORTUNITY TO COMMENT ON ASAS ONCE THEY WERE INITIALLED THERE WAS THEREFORE NO NEED TO DELAY DISCUSSION ON

ASAS.

G7 SUMMIT.

8.

NAKAYAMA SAID THAT THE SUMMIT WOULD BE EXTREMELY IMPORTANT. THE KEY ISSUES WOULD BE THE GULF, THE SOVIET UNION, THE WORLD ECONOMY AND THE URUGUAY ROUND. IT WAS IMPORTANT THAT THE DISCUSSIONS SHOULD HAVE A GLOBAL PERSPECTIVE AND THEREFORE INCLUDE MATTERS OF RELEVANCE TO THE ASIAN AND PACIFIC REGION. THESE SHOULD INCLUDE CAMBODIA AND THE TWO KOREAS. THE SECRETARY

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