TNAG-2607-FCO40-3798-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 37

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

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MESSAGE FOR MR TADASHI IKEDA FROM SIR J COLES

2

Livieds

I understand from the Governor of Hong Kong that he had a most

useful visit to Tokyo. I wanted to let you know how grateful

we are for the consistent support we receive from Japanese

Ministers and officials on the Hong Kong issue.

Japan is uniquely well placed to explain to China the

realities of international business confidence in Hong Kong. We greatly value your many helpful interventions in the past.

The Governor will have brought you up to date on his thinking.

But you might find it useful to have our impressions of the present situation in Hong Kong. The Governor's proposals continue to attract steady support from the community (by a

margin of about 2:1 according to a series of opinion polls)

The business community are understandably anxious to see the

current difficulties resolved soon. But the economic

fundamentals in Hong Kong remain sound. As you know, the

Chinese have reacted harshly to the Governor's proposals and

the fact that he announced them before engaging in detailed

discussion with the Chinese. Their statement casting doubt on

the validity of government contracts and franchises stretching

beyond 1997 is inconsistent with the Joint Declaration and the

Basic Law. Their demand that the Governor should withdraw his

proposals as a pre- condition for any discussion is wholly unrealistic. The Governor has of course emphasised that his proposals are just that: proposals for discussion, and the Governor would be happy to discuss any alternative proposals

China may have for the elections in 1995 which would be open,

fair and acceptable to the people of Hong Kong.

The 25th meeting of the Sino-British Joint Liaison Group took

place recently in Hong Kong. The Chinese side unfortunately

refused either to discuss our proposals for the 1995

elections, or to transact any other business on the JLG

agenda.

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