TNAG-2346-FCO40-3415-Political-relations-between-Hong-Kong--Japan-and-China-1991 — Page 6

CONFIDENTIAL

Another subject of great concern to us all is that of North Korea's nuclear policy. Recent developments on the peninsula give some

grounds for cautious optimi sm. Much however will now depend on the North's response to South Korea's offer on mutual inspection of

facilities. The Chinese have taken the line that international

pressure on North Korea will be counterproductive. But the Chinese

have also commended the denuclearisation of the entire peninsula as

their favoured objective. I am sure that you will be discussing

this subject with them, and encouraging them to influence North

Korea in the right direction.

Finally on the environment we welcome Chinese decision to accede to

Montreal Protocol (Ozone Layer). The UNCED process is however

clearly much more ambitious. It is a crucial political opportunity

to tackle problems affecting us all. It is important that national

leaders, including Chinese, attend. We see UNCED priorities as the

successful conclusion of framework conventions on climate change and

biodiversity, and agreement on forests.

On climate change, it is vital to achieve a convention containing

substantive commitments. Delaying commitments will only lead to

worsening of the problems which need to be tackled. We must

recognise the developmental concerns of developing

of developing countries. But

it is important that all countries must contribute, according to

their abilities. Clearly developing countries will need

technological and financial help in fulfilling their commitments,

both in climate change and other contexts Developed countries will

play their part.

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We continue to support the Global Environment Fund as a single,

comprehensive mechanism for global environmental issues and agree with China's view (expressed at

(expressed at the recent GEF participants meeting

in Geneva) that a cost-effective mechanism is needed with a minimum

of bureaucracy. We accept the need for change in CEF governance to

give developing countries a greater say in the decision-making

process.

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CONFIDENTIAL