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11. The Chinese expressed satisfaction with the state of bilateral trade. The Minister of Foreign Trade mentioned that Chinese oil production should reach 100 million tons next year or the year after. The Secretary of State drew attention to areas in which Britain could supply China, notably aerospace, oil, technology and equipment, mining machinery and ships.
Hong Kong
12. Hong Kong was mentioned only in passing and the question of its future was not raised at all.
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13. The Chinese Foreign Minister renewed the longstanding Chinese request for official representation in Hong Kong; Mr Crosland replied that HMG remained of the view that the time was not ripe.
Japan
14.Japan is of major importance to the UK due to its existing economic and political weight. HM The Queen visited Japan in 1975. However no Foreign & Commonwealth Secretary had visited the country since 1970, and no Prime Minister since 1972, and the regular ministerial consultations had not taken place since 1973. The objective of the visit was thus to restore the proper tempo for such consultations, to emphasize the importance HMG attach to political, economic and commercial relations with Japan. We also wished to underline the encouraging prospects for the British economy and to emphasize our determination to correct the present imbalance in anglo-Japanese trade by expansion of our exports to Japan.
The Talks
15. The Secretary of State had two rounds of discussions with the Japanese Foreign Minister, Mr Miyazawa. He called on the Prime Minister, Mr Miki, the Minister of International Trade and Industry, Mr Komoto, and the Crown Prince (who is to visit the UK from 15-24 June). The discussions with Mr Miyazawa were relaxed and stimulating. The main points were Mr Crosland's impressions of China; Japan's own relations with China; Korea, Indo-China and South East Asia; British policies in Southern Africa; and the economic prospects of both sides. The Prime Minister, Mr Miki, emphasised the close relations existing between Britain and Japan and expressed interest in close links between Japan and Europe.
16. Economic questions were taken up with all three Ministers with emphasis on British economic prospects, the dosirability of further Japanese reflation and the need to resolve the bilateral trade imbalance. The Japanese were left in no doubt of pressures in the UK for the protection of particular British industries. Both sides favour voluntary solutions but the Secretary of State reserved the position of HMG on selective import controls.
17. Mr Miyazawa will visit Britain for the next round of consultations and the Frime Minister was invited to visit Japan.
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