NOTHING TO BE WRITTEN IN THIS MARGIN

d.

e.

CONFIDENTIAL

and overall, world-wide tariff cuts.

the Government would liberalise completely

Japanese investment abroad. At present

investment was automatically authorised up to

$1 million.

the Government would abolish various non-

tariff barriers eg the automatic import

quota.

f.

the Government would improve its economic

co-operation.

g.

the Government would try to abolish special

tax incentives for export, such as the

arrangements by which the Japanese exporters

I could delay tax payments.

These measures combined should bring about a

reduction in the balance of payments surplus, even

via-a-vis of the United States.

CONFIDENTIAL

/Mr. Bottomley

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