TNAG-2910-FCO40-4185-International-support-from-Asia-regarding-the-future-of-Hong-1993 — Page 24

- 5-

the military aspects of international life. Japan was not there yet. On the economic front Japan was a leader and this was reflected in membership of the G7. On the G7, despite our preferences, the Japanese, who saw the process differently from us, would undoubtedly make the Tokyo Summit extremely formal. If there was anything that the 2000 Group could do to press for reform of the G7 process that would be helpful. The Prime Minister said that it was asking a lot for the Japanese to change the format this time. But if they could start the process at Tokyo that would be a step in the right direction.

Mr. Howell said that Owada had felt bitter about Japanese exclusion from the CSCE process. Japan after all was, like us, a neighbour of Russia. We needed to make the Japanese feel part of the overall consultation process. Turning to Hong Kong, he asked whether there was anything that the Group should seek from the Japanese. The Foreign Secretary said that Japan had been very helpful in the last two to three years, without overdoing it in public. They had explained to the Chinese that if they wished to play a full part in international life, they should recognise that Hong Kong was now a political as well as an economic city. It was important for the Japanese to continue to make these points, especially now that the water was rougher. He hoped that we would soon be in discussion with the Chinese again. It would be helpful if the Japanese could continue to make the right points to the Chinese, not necessarily at Ministerial level but perhaps better at other levels. The Prime Minister said that what happened in Hong Kong had an impact not only on the world's view of China but also, importantly, regionally. Japanese trade flows with China were now increasing in geometric proportions.

The Prime Minister said that there were two other points. On the question of Debt, there were difficulties in making progress over the Trinidad terms. The Japanese had an inborn objection to writing off debt rather than re-scheduling. It would be helpful if the Group could explore the background. Secondly, the question of assistance to the FSU over nuclear power stations would certainly come up again in the G7 context. The Japanese had not been very forthcoming to date. It would be helpful to press them on this point.

Sir David Steel was glad that the Japanese had been helpful over Hong Kong. In Hong Kong itself, which he had just visited, businessmen were not supportive of Mr. Patten. The Foreign Secretary said that money-making preferred a quiet life. The Prime Minister said that regrettably those businessmen were more interested in business with China than in democracy in Hong Kong.

Ureening