TNAG-2400-FCO40-3487-Political-relations-between-Hong-Kong-and-Japan-1992 — Page 23

CONFIDENTIAL

HKA 020/2

CONFIDENTIAL

FM TOKYO

TO IMMEDIATE FCO

TELNO 623

OF 140817Z SEPTEMBER 92

INFO IMMEDIATE MOSCOW, BTC HONG KONG, HONG KONG

HONG KONG FOR POLITICAL ADVISER

023752

MDHIAN 8767

copie, for Ricketts Morris

7

MB Came

Afte

Fils:

Hic / Japan ale

M

14/9

HONG KONG/NORTHERN TERRITORIES

1.

AT A G7 BRIEFING ON THE NORTHERN TERRITORIES THIS MORNING THE FRENCH AMBASSADOR (DISOBLIGINGLY) DREW ATTENTION TO PRESS STORIES CONCERNING PLANS BY PRIVATE HONG KONG ENTREPRENEURS, WORKING GENERALLY WITH THE RUSSIANS, TO DEVELOP A BEACH RESORT ON SHIKOTAN. THE JAPANESE POLITICAL DIRECTOR SAID THAT THE JAPANESE DID NOT LIKE THIS ONE BIT AND WERE CONSIDERING REPRESENTATIONS TO THE RUSSIANS AND INDEED THE BRITISH (IE HONG KONG) AUTHORITIES.

2.

I HAD A QUICK WORD WITH SAITO AFTERWARDS, REMARKING INTER-ALIA, THAT THE PRIVATE SECTOR DID THEIR OWN THING AND WERE NOT ALWAYS AMENABLE TO GUIDANCE BY GOVERNMENTS. SAITO REPEATED THAT THE JAPANESE GOVERNMENT WERE NOT BEST PLEASED. HOWEVER THIS WAS NOT A MAJOR ISSUE WITH US AND HE WOULD NOT WANT ME TO TAKE IT AS SUCH.

WE CHECKED SUBSEQUENTLY WITH RUSSIA DIVISION ABOUT FURTHER PRESS REPORTS WHICH HAD QUOTED CABINET SECRETARY KATO AS SAYING THAT IF THE LEASE WERE CONFIRMED JAPAN WOULD LODGE A PROTEST WITH THE ''PARTIES CONCERNED IN HONG KONG' AND THAT THE HONG KONG COMPANY WAS A FRONT, POSSIBLY FOR A JAPANESE PASSPORT HOLDER. MIYAGAWA (DEPUTY DIRECTOR) SAID THE SECOND POINT WAS BEING CHECKED AS A MATTER OF URGENCY. IF THE LESSEE WERE INDEED JAPANESE IT WOULD BE A DIFFERENT AND FOR JAPAN - MORE SERIOUS MATTER. WHATEVER THE NATIONALITY, JAPAN WOULD BE ISSUING A PROTEST TO THE RUSSIAN GOVERNMENT. THEY WOULD HOWEVER ONLY CONSIDER AN APPROACH TO THE HONG KONG GOVERNMENT IF THEY HAD SOME LOCUS IN THE ISSUE. HE ASKED IN PARTICULAR WHETHER THERE WERE ANY LEGAL CONSTRAINTS OR REQUIREMENTS ON HONG KONG COMPANIES WHO WISHED TO INVEST OVERSEAS.

4.

J

IT WOULD BE HANDY IF HONG KONG COULD BRING US UP TO SPEED RAPIDLY WITH WHAT, IF ANYTHING THE LOCAL PRIVATE SECTOR HAS IN MIND IN THE NORTHERN TERRITORIES AND IF THEY COULD LET US KNOW THE LEGAL ANGLES ON OVERSEAS INVESTMENT (I ASSUME NONE). JAPAN'S IMMEDIATE TARGET IN THIS EPISODE WILL BE RUSSIA BOTH FOR AGREEING TO THE DEAL

1

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