TNAG-2606-FCO40-3797-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 120

A

CONFIDENTIAL

Background

Reference A: Message to Secretary of State from

Mr Watanabe of 16 January.

B: Message to Secretary of State from Mr Watanabe

of 18 December.

B

X

X

1. Mr Watanabe's message includes a report on exchanges with the Chinese about Hong Kong. Japan is uniquely placed

to influence China. Mr Kaifu and Mr Nakayame lobbied

various Chinese Ministers last summer in favour of an early

airport agreement and warned that negative Chinese

statements could damage international business confidence.

2.

Mr Nakayama took a helpful line on Hong Kong's

democratisation during a visit to Japan in October by

Zhou Nan, Director, NCNA in Hong Kong, but in general the Japanese had preferred to emphaise the need to preserve Hong Kong's economic freedoms. Mr Watanabe's message of

18 December to the Secretary of State invited us to suggest

lines to take for his visit to China. We provided one on

democracy in Hong Kong, which his report shows he made use

of.

3. China has not previously objected to such lobbying by Japan but remains paranoid about the "internationalisation" of Hong Kong, so their use of this word in the exchange with

Watanabe might be a warning shot across the bows. Chinese

neuralgia about democracy means that future lobbying will

need to be sensitively handled, but the Japanese are best placed to do this. We should encourage them to continue.

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