CONFIDENTIAL
PRIME MINISTER'S VISIT TO JAPAN, 18 21 SEPTEMBER 1993
HONG KONG
Background
CONSTITUTIONAL TALKS
1.
The Japanese are now the second largest investors in Hong Kong (after China) and take a close interest in developments there. They have been privately supportive over the Governor's democracy proposals, and have been prepared to raise their interest with the Chinese. For example, the Japanese Foreign Minister told his Chinese counterpart Qian Qichen in May that Japan considered it vital that Hong Kong should maintain an open system both politically and economically after 1997: that this was important not just for Hong Kong but for the whole Asia-Pacific region: and that Japan hoped that constructive dialogue could be held between China and Britain on Hong Kong's future.
2. Talks on the 1994/95 election arrangements for Hong Kong began in Peking on 22 April and are continuing. Progress has been slow but the atmosphere has been businesslike. Following the meeting in Peking on 9 July between our two Foreign Ministers, the negotiations are now focussing on the essential points of substance. There is still much difficult ground to cover and the gap between us is wide. At the ninth round (16-17 August) the Chinese rejected our proposals on functional constituencies and refused to discuss the through train. We cannot yet judge whether this tough line is a negotiating ploy, or a sign that they no longer expect to reach an agreement.
bground.pmjapa.NAT
JEB
CONFIDENTIAL
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