TNAG-2346-FCO40-3415-Political-relations-between-Hong-Kong--Japan-and-China-1991 — Page 69

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MDHIAN 1038

RIGHTS IN CHINA. IT WAS IMPORTANT TO EMPHASISE THIS POINT.

6. THERE WAS AN EVEN BRIEFER EXCHANGE ON BILATERAL ISSUES. MRS THATCHER WELCOMED THE GOOD STATE OF RELATIONS AND NOTED THAT A LOT HAD BEEN ACHIEVED. JAPANESE INWARD INVESTMENT WAS A POSITIVE FACTOR, BRITAIN HAD FOUGHT FOR THE FREE MOVEMENT OF GOODS IN THE EC AND HAD WON AN IMPORTANT VICTORY ON CARS. SHE THANKED THE JAPANESE FOR THE DECISION ON HSX AND GAS TURBINES, AND HOPED THAT JAPANESE

PRIVATE COMPANIES, PARTICULARLY ANA, WOULD FOLLOW THE JAPANESE GOVERNMENT'S LEAD AND ORDER ROLLS ROYCE ENGINES. KAIFU NOTED THAT ISSUES RAISED DURING HER PRIME MINISTERSHIP HAD NOW BEEN SETTLED, IN PARTICULAR THE TOKYO STOCK EXCHANGE. HE WAS AWARE OF THE DECISION ON THE BAE125 AND HAD INSTRUCTED THAT THE OTHER MATTERS SHOULD BE PURSUED POSITIVELY.

7. ONE FINAL POINT WORTH RECORDING WAS A PLUG BY MRS THATCHER IN SUPPORT OF OBASANJO FOR THE POST OF UN SECRETARY GENERAL.

SIGNED E J FIELD

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