TNAG-2346-FCO40-3415-Political-relations-between-Hong-Kong--Japan-and-China-1991 — Page 138

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HKD 021/1

1/12

DECEIVED IN REGİSTOV

Mr Morris

3 - JUL 1991

CT faxed 27.

Reference

Fox to Tokyo.

Our Tex of 1/7 refers.

الامل

FICER

JAPANESE FOREIGN MINISTER'S MEETING WITH CHINESE FOREIGN MINISTER

1.

Mr Takahashi of the Japanese Embassy has given me the following readout from Nakayama's meeting with Qian Qichen. I leave it to you to judge whether it adds substantially to the telegram we sent last week on the same subject and whether it is worth reporting to posts. Mr Takahashi added that the Japanese Prime Minister Kaifu will visit China on 10-13 August. He also said that, since Gorbachev was being invited to the London G7 Summit, there was a greater danger than in other years that China would feel isolated by the G7. The Japanese therefore intended to brief China fully on the outcome of the Summit.

2. Mr Nakayama made three points:

(a) he stressed the importance Japan attached to Hong Kong's continued economic autonomy, stability and prosperity on the basis of the JD and BL. This was relevant to reform and opening up in the PRC and to the stability and prosperity of Asia and the World. It was important for business people to have confidence in the success of Hong Kong's economic system after 1997. Japan was ready to cooperate to this end;

(b) he stressed that Hong Kong's new airport was a symbol of Hong Kong's stability and prosperity. Japan hoped for an early resolution of the talks. Delay would adversely effect confidence in Hong Kong's future;

(c) he referred to the MFA statement about the enactment of the Bill of Rights. The mention of the possibility of revision of Hong Kong's legal system in 1997 would have an extremely adverse effect on the attitude of international business, including Japanese companies. He hoped that China would take a more careful attitude in future.,

3. Mr Qian made four points in reply:

(a) he appreciated Japanese concern about Hong Kong. China's policy had not changed: it was based on the JD and the concept of "one country, two systems"; China wanted Hong Kong to keep its role as an international financial centre. The Chinese have repeatedly told the British Government that Hong Kong's stability and prosperity was good for both Britain and China and that the two must cooperate together;

(b) both the British and Chinese Governments recognise the necessity for a new airport but the details remained to be resolved. The subject had been discussed during Mr Hurd's visit to China. The Chinese Government were optimistic that agreement could be reached;

CODE 18-77

MUKAOL CC

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