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(e)
16.
(a)
Economy probably continue on present course: dynamic South China growth might ameliorate effect on Hong Kong if MFN not renewed.
Sir J Coles said:
Mr Keating's PRC visit would be important. Suggested that Britain feed in an update on Hong Kong situation and suggest points to be made to the Chinese leadership about Hong Kong
(Mr Smith welcomed this).
(b) British figures on consequences for Hong Kong of non-MFN
renewal had been carefully researched.
(c) British side would provide details of Chinese Human Rights
Delegation to Britain (including Northern Ireland).
Taiwan
17.
Mr Benson (DFAT) did not see early declaration of independence as likely. Pressures might be deflected by applying to rejoin the UN. Taiwan welcomed being treated as an equal by PRC in Singapore talks.
Japan
18.
(a)
(b)
(c)
19.
(a)
(b)
(c)
DFAT team said:
Miyazawa's visit had been in G7 Summit context. Useful opportunity to make points on managed Japan-US trade. Suggested way around this was generally reducing trade barriers. APEC and regional trade policy had been main focus.
US and Japan were major Australian trade partners: uncomfortable about involvement in US-Japan rift. Considerable longer term consequences: APEC partly intended to build US-Japan bridge.
Enlightened British attitude to Japan welcomed. Important that Japan had substantive dialogue partners. Australia supported Japanese UNSC permanent membership: but not offered view on how to attain this.
Sir J Coles said:
FCO would welcome stronger dialogue over Japan and Japan-US relations.
Remarkable success of Britain-Japan relations: Japan wanted mature political relationship. British experience a model for
the rest of Europe.
Prime Minister would visit Japan in September.
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