TNAG-2629-FCO40-3820-Future-of-Hong-Kong-nationality-British-National-(Overseas)-1992 — Page 139

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Mr Miyazawa said that intellectual

ex changes between the two countries needed expanding. (He made no specific proposals). The Prime Minister said that he would be

happy to see this developed.

HONG KONG

The Foreign Secretary expressed appreciation for Japanese help in recent years in speaking quietly to the Chinese

about Hong Kong. The Chinese were sensitive that Hong Kong was a bilateral issue. But Japan was well placed to explain realities about the need to maintain Hong Kong's way of life in or der to encourage continued investment.

We faced many difficulties before 1997. The Chinese were

very suspicious, paradoxically, of the results of the

very concept that they had invented: one country, two

systems, since this led to freedom of expression etc in Hong Kong. They also suspected the UK of handling finances in Hong Kong to our advantage. He explained the

current problem over the airport and referred to Mr

Patten's forthcoming arrival. Problems would continue

and we would want to keep Japan informed. The Chinese should be clear that Hong Kong was a huge asset to them

provided they did not destroy it.

Mr Miyazawa agreed that Japan would try to help when

problems arose. He could not believe that any Chinese

leader, whether Deng or a successor, would wish to

destroy Hong Kong. The Eastern seaboard of China was in

any case steadily developing a market economy largely out of the control of Peking. The Prime Minister agreed that

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