6 I regret, that in certain industrial fields, we in the United Kingdom may have missed out on a whole phase of the technological

revolution. It is not that we lack the knowledge. It is sometimes

that we have failed to put it to the most practical and efficient

use. I would venture to suggest that in commerce, services,

banking, insurance, agriculture, indeed in so many fields of

endeavour we can hold our own and beat most competitors. And

indeed in a whole range of particular industries we are of course

world leaders in technology such as medical equipment, mining

equipment and offshore oil technology. If this were not the

case we would not be able to sell our goods as successfully as

we do.

and

7 The problem which we face between us is that although the

level of direct exports between us is really pretty insignificant

your exports to us represent just over 3 per cent of our total imports and our exports to you represent about one and a half per cent of your total imports you have most successfully

we freely acknowledge this concentrated your attack upon our

market in some of our weakest and most sensitive areas. I do not

need to tell you the extent of the commitment of the new Conservative

Government to bring about industrial change within our country.

In some of the areas of greatest interest to Japan there is already

in the United Kingdom a major shift of employment going on away

from our less efficient industries into the skills of tomorrow

but while this process of change in industry accelerates, as

Secretary of State for Trade, I must tell you bluntly that I am

not going to allow sudden surges of imports to disrupt our

society.

8 In the United Kingdom we believe in open trading; we are

determined to continue our work for world-wide reduction in

non-tariff barriers that in the end make us all the poorer (and

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