TNAG-2607-FCO40-3798-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 23

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Jim Eberle's draft of letter from David Howell to Motoo Shiina.

We are moving ahead with our preparations to meet the agenda of our Awashima conference, which we agreed during our October visit to Tokyo. I enclose a copy of our English version--- and a provisional list of our team.

I am glad to say that Chris Patten has now confirmed his intention to attend, and this gives added weight to the importance of our main subject, "Hong Kong and South China in an Asia/Pacific context." He has particularly welcomed the regional context in which the item is set, as Hong Kong is usually considered either against the background of China or in relation to Hong Kong's American or European markets.

I believe this is a very important point which needs further emphasis, particularly in Hong Kong itself. After discussion with the Foreign office, we therefore believe that it would be sensible now to set in hand preliminary moves to consider holding a tripartite UK-HK-Japan conference in Hong Kong, probably in September/October next year. The aim would be to explore areas of common/joint action in support of the continuing economic prosperity and political stability of Hong Kong; and to reinforce local and international confidence in its future.

Let me offer some outline ideas:

The conference might-

(a) Review the present state of the process of implementing the Joint Declaration and examine possible further developments up to the year 2000.

(b) Review economic and political developments in China and Taiwan-with particular reference to South China and the integration of its economy with that of Hong Kong, and the coastal regions of China.

(c) Consider the wider political and economic developments in Southeast Asia against the background of developments in the global economy; and to assess their impact on Hong Kong-China relations. (Including Japanese and US influence in the region-and US/China trading relationships)

(d) Consider the possible impact of the "One Country-Two Systems" concept on China-and on China-Taiwan relations.

The conference would be non-governmental-but would have the support of the three governments. It might be in two parts.