Cable No. 2632, Ambassador Yoshida to the Foreign Minister, 'Prime Minister's Visit to China (Second Summit Meeting) (A)'

Number (TA) RO98779 5181

Primary: Asia and China

Sent:  China, December 07, 1979, 00:50

Received: MOFA, December 07, 1979, 02:35

To: The Foreign Minister  

From: Ambassador Yoshida

Prime Minister's Visit to China (Second Summit Meeting) (A)

Number 2632 　Secret　Top Urgent

Concerning Outgoing Telegram No. 2615

Following the tête-à-tête, the second summit meeting took place, over the course of approximately an hour and a half, on the 6^th, in the Xinjiang Hall of the Great Hall of the People. It proceeded as follows (those attending on both sides were as planned in advance):

1. Following are the main points of what Premier Hua said on the results of his visit to four countries in Western Europe. He made the remarks after prefacing them in saying that, as he had spoken a great deal on international problems the day before at the first meeting and as there had been discussion concerning the Sino-Soviet talks in the meeting with Vice Premier Deng Xiaoping, he would like to curtail what he would say concerning them.

He stated that there was an agreement of views with those countries on a wide range of international problems.  For example, China wishes for the countries of Western Europe to join together and grow in strength. The countries of Western Europe, too, recognized that a more prosperous and stronger China would be a plus for world peace and indicated that they would actively cooperate with the Four Modernizations.

Among those countries were those, like West Germany, which are developing trade with China and others that wish to have further expansion in trade. Many countries are saying that they would provide loans to China but, as there is a need to consider the ability to repay them, China is making almost no use of them. China would like to pursue cooperation with the countries of Western Europe at every level and in every field. The governments and private sectors of those various countries approve of this. In addition, the countries of Western Europe were pleased with the conclusion of the China-Japan Treaty of Peace and Friendship and the establishment of relations between the United States and China. We are satisfied with the results of our recent visit to Europe.

2. Next, moving on to bilateral issues, Prime Minister Ohira spoke briefly of our side's position on the basis of prepared talking points regarding: (a) our country's cooperation with China's modernization, (b) a memorial delegation's visit to China, (c) the Awa Maru, (d) the Japan-China resources and energy issue, (e) provision of preferential treatment, (f) technical cooperation with China, (g) student exchange, (h) agreement on scientific and technical cooperation, (i) cultural exchange, and (j) cooperation in Japanese language education. In response, the other side made the following statements:

(1) Since the normalization of relations between Japan and China, and particularly since the conclusion of the China-Japan Treaty of Peace and Friendship, we have achieved great development in relations between our two countries. Mutual exchanges in such fields as politics, economics, culture, and science and technology have been flourishing. Relations between China and Japan have reached a new level, and we are satisfied with their steady development.

We highly evaluate the joint communique issued at the time of Prime Minister Ohira's visit to China in 1972 and the Treaty of Peace and Friendship between Japan and China concluded last year. We would like to thank Prime Minister Ohira and the many old Japanese friends for the great contributions made to the development of relations between our two countries.

(2) Prime Minister Ohira has touched on a number of concrete issues. Concerning economic cooperation, the prospects are vast. As said in the car yesterday, China has an abundance of resources but low levels of science and technology and industry, so its resources remain undeveloped and unutilized. On the other hand, Japanese levels in these regards are higher than in China, so we can complement one another. China hopes that the Japanese economy further prospers. On the other hand, Prime Minister Ohira and many friends have said that they wish to cooperate with China's Four Modernizations. We consider that the realization of the Four Modernizations and the development of the Japanese economy through the cooperation of our two countries will benefit the peace and stability of Asia and, by the same token, that of the world.

(3) To date, the private sector has built a great bridge between China and Japan and, since the normalization of relations and the conclusion of the treaty between China and Japan, a bridge has been built between our two governments. China attaches great importance to those great bridges. We are satisfied with the development to date of relations between our two countries by means of the bridges of the government and private sector and are happy with the vast prospects that will open in the future as well. Prime Minister Ohira has said in undertaking his visit to China that he would like to make relations between Japan and China in the 1980s firm and unshakable.  As for myself, not stopping with the 1980s, I would like to consolidate its basis over the long term. As Prime Minister Ohira said at the banquet yesterday evening, I would like to develop relations between our two countries, whatever happens, into something unshakable and magnificent.

3. Premier Hua, further saying that he would like to respond to the concrete issues below, made the following remarks:

(1) Concerning economic cooperation, I heard from Prime Minister Ohira a little while ago that, with the exception of the Longtan and Shuikou projects, Japan would actively cooperate, providing 50 billion [yen] in fiscal year 1979 at an interest rate of three percent, a repayment period of 10 years, and a grace period of 20 years, with procurement untied in principle.  China respects Japan's opinion. As Vice Premier Deng said to Prime Minister Ohira, this is the first result of cooperation between our two governments. We would like to have the relevant persons negotiate the details.

(2) Concerning the issue of the memorial delegation, in light of the sentiment of Japan's bereaved families and Prime Minister Ohira's request, the Party Committee agrees in principal with the sending of a memorial delegation. I would like to have the details discussed through diplomatic channels.

(3) There has been gratitude for the return of the remains and belongings of the Awa Maru victims, and I would like to continue with their return. I think that we should do that, given the friendly relations between China and Japan. With the relevant section recently having reported that more belongings had been recovered, I would like to have them sent in the near future. I think all that is required for their delivery is to talk with the relevant section. In any case, I would like to continue cooperating.

(4) Concerning joint resource development, Prime Minister Ohira expressed congratulations on the conclusion of negotiations for the joint development of oil in Bohai Bay. It was stated yesterday, the 5^th, that this agreement would be signed on the 5^th. However, given the desire of our Japanese friends for its signing when Prime Minister Ohira was in Beijing, the signing took place this morning, the 6^th. This agreement is for the joint development of 25,000 square kilometers. However, according to the Handan development company for oil and natural gas, the effective development area in Chinese waters amounts to 80,000 square kilometers. Other than Japan, we have held talks with Britain, France, Italy, and the United States and begun exploration. Italy is now participating with the United States in the development of the South China Sea but has expressed a desire to develop it alone. Now that we have an agreement for Sino-Japanese cooperation on Bohai, I would like to talk as well about the development of other areas.

(5) Concerning the development of coal, we have been engaging with our Japanese friends in talks on four plans (with an annual extraction capacity of 12 million tons). Europe and the United States, our Japanese friends, and Minister Ohira as well, are saying that coal's golden age is coming. Since the oil crisis of 1973, ever greater importance has been attached to coal. Concerning the development of coal, cooperation with West Germany is relatively advanced. We have been in talks on coal gasification with West Germany and the United States. (Following discussion of each province's deposits) We have already concluded development contracts with Romania, Yugoslavia, France, and Britain. Our Japanese friends desire its long-term and stable supply. Discussing details in the Gu Mu – Ohira meeting is fine. We would like to pursue cooperation by such means as compensation trade for large-scale mining development. If we can determine concrete projects, then in the future we can provide Japan a stable supply. In addition, China has an abundance of non-ferrous metals and other resources.

(6) I would like to thank you for the provision of preferential treatment.

(7) We would like to pursue technical cooperation on both a government basis and a private-sector basis. But I would like to forego detailed discussion of this here.

(8) Concerning cooperation in medical care, I would like to express my approval for the writing of a joint press statement on the plan for the China-Japan Friendship Hospital, the symbol of friendship between China and Japan. If we are decided in principle here, I would like to leave the concrete discussions to the relevant sections.

(9) I am in complete agreement on the need for an early conclusion of an agreement on scientific and technical cooperation. I would like to discuss this as soon as early next year.

(10) I agree with Prime Minister Ohira's explanation on the importance of cultural exchange and am in agreement with and thankful for the proposal of a five-year plan for Japanese language education. Chinese and Japanese characters are somewhat different, so there is much that both countries can do.

4. Prime Minister Ohira, after expressing gratitude for the above remarks, said that the second meeting with Premier Hua was both useful and important for the further development of relations between Japan and China; that the friendly relationship between the two countries was not one of one side making demands but of mutual sharing on both sides; that the people of Japan and he were looking forward to Premier Hua's visit to Japan in May next year; and, finally, that he was thankful for the opportunity to speak tomorrow, the 7^th, at the Chinese People's Political Consultative Conference and was looking forward to seeing you again in Tokyo.

In response, Premier Hua said: I am in complete agreement with Prime Minister Ohira's appraisal of the second meeting. We were able to deepen mutual understanding and find common perspectives on many issues. As the environment is different in each of our countries, differences do arise in the handling of individual concrete issues. However, I would like to proceed, as the late Premier Zhou Enlai said, in seeking common ground on major questions while reserving differences on minor ones. I firmly believe that friendly relations between our two countries are, without a doubt, developing smoothly. Visiting Japan in May next year is a pleasure similar to that of visiting relatives.

(End)