TNAG-2607-FCO40-3798-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 12

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

From the Ambassador

17 December 1992

CONFIDENTIAL ·

British Embassy Tokyo

William Ehrman Esq Political Adviser

HONG KONG

(by fax)

Dear William

HONG KONG: JAPANESE INVESTOR SENTIMENT

1. At breakfast on 15 December, Yukio Satoh made some points in the wake of the Governor's visit. He thought it had gone pretty well.

The Governor had been prudent to deal with the issue of Japanese political sport in advance of the visit.

2.

He

Had

Satoh raised a couple of points, more than just casually. had re-read the Governor's speech to LegCo. thrust and the skilful capture of the Martin Lee political

He applauded the basic programme. He also understood the wide base of support in the UK. He further accepted points underlined by me commitment and the transparency of his proposals.

the Governor's total critique. Satoh thought the claim justified that the Hong Kong Then came the Government were operating within the limits of the Basic Law - but only just. And then there was the question of Mainland face. these been factored sufficiently into the policy advice? I have sent Satoh Baroness Chalker's reply to Lady Thatcher in the House of Lords: ie, conclusively, the Chinese were warned. said in addition that the Governor must in the end be seen to

I respond to the wishes of the people of Hong Kong: precisely that; he could not forever be clearing things in heavy

that meant type with Peking. Satoh agreed. He enquired nevertheless whether Ministers had pushed the Governor further than he had himself wished to go.

I said it was a seamless robe.

3.

In reply

Satoh asked me to pass on, which I do, his perception of a mood of considerable concern about Hong Kong in the Japanese business community, given their intersecting commercial and banking interests in China and Hong Kong. that the Governor might find it useful to address these concerns,

He personally thought whether in public or private, direct with the Japanese business community in Hong Kong (who were currently feeding their rather negative lines to their headquarters in Japan). reason this was difficult in Hong Kong Satoh recommended that the

If for any Governor speak to the senior Japanese investors when, as we all hope, he visits Tokyo for UK-Japan 2000 in March. could of course be accommodated very easily round my dining room

Such a meeting table but March might be distinctly on the late side.

CONFIDENTIAL

/4.

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