TNAG-2606-FCO40-3797-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 127

RESTRICTED

155110 MDLIAN 5336

TWO PRIME MINISTERS. THE EMPEROR AND EMPRESS WERE AGAIN INVITED TO VISIT. SAITO SAID THE JAPANESE REPLY THAT THEY WOULD SERIOUSLY STUDY THE INVITATION WAS A MORE FORTHCOMING RESPONSE THAN IN THE PAST. JIANG ZEMIN WILL VISIT JAPAN IN THE FIRST HALF OF THE YEAR AND WAN LI (CHAIRMAN OF THE NATIONAL PEOPLE'S CONGRESS) IN THE SECOND. IT WAS AGREED THAT THE ''JAPAN FUND'' (THEIR EQUIVALENT OF THE GOETHE INSTITUTE) WOULD BE ALLOWED TO ESTABLISH AN INDEPENDENT

OFFICE IN PEKING.

4. THE CHINESE PRESSED FOR A LARGE AGRICULTURAL LOAN (FIRST SOUGHT BY TIAN JIYUN IN TOKYO LAST YEAR). WATANABE SAID THAT THERE WAS

ALREADY THE THIRD YEN LOAN AND THAT JAPANESE COULD NOT NOW CONSIDER ANOTHER MAJOR LOAN. HE SAID THAT THE JAPANESE WOULD REPLY SOON TO A CHINESE REQUEST FOR A THIRD ENERGY LOAN FROM THE EXPORT IMPORT

BANK. THE CHINESE WANT THIS LOAN TO DEVELOP OIL FIELDS AND COAL MINES. WATANABE ALSO RAISED ENVIRONMENTAL PROTECTION AND PROBLEMS WITH FISHING BOATS IN THE EAST CHINA SEA BUT NEITHER QUESTION WAS

SETTLED.

HONG KONG

5.

WATANABE EMPHASISED THE IMPORTANCE JAPAN ATTACHED TO THE MAINTENANCE OF STABILITY AND PROSPERITY IN HONG KONG AFTER 1997.

QIAN QICHEN REPLIED ALONG STANDARD LINES. JAPAN NEED NOT WORRY

ABOUT ITS INVESTMENT THERE. THOSE PEOPLE NOW LEAVING HONG KONG WOULD RETURN AFTER 1997 ONCE THEY SAW THAT IT WAS STILL STABLE AND PROSPEROUS. QIAN SAID THAT BOTH THE UK AND CHINA EXPECTED A

SMOOTH TRANSITION. SAITO SAID THAT NEITHER QIAN NOR WATANABE

RAISED THE ROLE OF LEGCO.

SINO-US RELATIONS

6-

WATANABE OFFERED JAPAN'S SERVICES TO CHINA AS A BRIDGE TO THE

WEST. HE REFERRED TO THE VISIT TO JAPAN BY PRESIDENT BUSH AND SAID

THAT CHINA SHOULD HELP BUSH BY DOING MORE. IT SHOULD ALSO DO MORE ON HUMAN RIGHTS TO IMPROVE ITS INTERNATIONAL IMAGE. A GERMAN COLLEAGUE (BRIEFED BY SAITO AFTER US) SAID THAT THE CHINESE HAD

SAID THEY HAD NO NEED OF JAPAN AS A CHANNEL TO THE WEST. SAITO SAID THAT LI PENG HAD TOLD WATANABE THAT THE CHINESE HAD NOTHING FOR WHICH THEY SHOULD APOLOGISE TO THE US. THE US HAD RAISED NEW DEMANDS ON BOTH INTELLECTUAL PROPERTY RIGHTS (IPR) AND ON MEETING THE 3 PRECONDITIONS FOR CHINA'S ACCESSION TO THE MTCR. WATANABE SHOULD TELL BUSH THAT THE US SHOULD ABIDE BY THE UNDERTAKINGS BAKER

HAD MADE.

2

PAGE

RESTRICTED