Background
General
1.
Japanese political interest in Hong Kong has increased recently: Mr Nakayama told the Secretary of State on 5 April (when they met in Peking) that Japan "shared some responsibility for the stability of Hong Kong in the
future".
2.
Japan is uniquely placed to influence China. Mr Kaifu and Mr Nakayama lobbied various Chinese Ministers this
summer in favour of an early airport agreement and warned
that negative Chinese statements could damage international
business confidence. China remains paranoid about the
"internationalisation" of Hong Kong, but has not objected to this lobbying by Japan.
3.
Our closer dialogue with Japan over Hong Kong policy has
included discussion when the Prime Minister saw Mr Kaifu in
the margins of G7; in two meetings between the Secretary of
State and Mr Nakayama and calls on him by MITI Minister
Mr Nakao and the Political Director, MFA; visits to Japan by
Sir J Coles, the Head of Policy Planning Staff and the Head
of Hong Kong Department; and calls on HKD by the Head of
China Division, MFA and on Sir J Coles by the Director
General, Asian Affairs Bureau, MFA.
4. Mr Nakayama took a helpful line on Hong Kong's
democratisation during a visit to Japan in October by
Zhou Nan, Director, NCNA Hong Kong, but in general the Japanese have preferred to emphazise the need to preserve Hong Kong's economic freedoms. We now need their help in
persuading the Chinese leadership that democracy and political freedoms in Hong Kong pose no real threat to their
regime and are vital to the success of "one country
systems".
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