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8. Japanese Defence Policy. In answer to a question from Mr Blaker about Mr Nakasone's statements Mr Yoshino said that he had removed the taboo about defence matters. He was showing positive leadership and giving the Japanese Defence Agency welcome support. The JDA had its plans to increase the capability of the Self Defence Forces and the USA was pressing for progress in this field. But plans needed money and this meant fighting with the Treasury. However, there was not a single Minister in Mr Nakasone's Cabinet who opposed the expan- sion of defence capability including the Minister of Finance.
9. Mr Yoshiño went on to say that there was concern in South East Asia that Japan might become a military super-power. She had advanced technology and a huge GNP. If the percentage of GNP allocated to defence were to rise they believed that Japan might become a danger. On his way back to Japan from London he had stopped in Indonesia to take the temperature of the water. Based on his experience there he had advised Mr Nakasone to take the following line during his tour of South East Asia: "Since the war Japan has climbed up to prosperity from a diet of pickled plums and rice to a diet of steak. Her economy is stable and there are few people out of work. In this she has received assistance and protection from the USA. Japan's standard of living has continued to rise, but America has suffered a recession,
have contributed. to which imports from Japan - such as motor cars America has asked Japan to be helpful in her turn, and this includes assuming more of the burden of her own defence. This was a reasonable request which Japan must accept; but she would not put at risk the prosperity and orderly social fabric achieved through years of effort since the war. She must continue climbing upwards and not overreach herself and slip back. Because of this there was no risk of her becoming a military super-power.
10. Mr Yoshino had advised Mr Nakasone that the countries of South East Asia would accept this line of reasoning.
11. Hong Kong. Mr Yoshino asked about the future of Hong Kong. Mr Blaker said that while this was no longer his responsibility he believed that the Chinese wished to preserve the prosperity of
However, Hong Kong which provided one-third of her foreign exchange. they also wished to achieve satisfaction on the question of sovereignty In order to reduce the contrast between the two ways of life on either side of the border he understood that the Chinese were constructing an industrial buffer zone along the border with special privileges. However, China's rulers had been Communist for most of their lives and he was concerned that they might not understand capitalism and the ease with which confidence and therefore prosperity could be destroyed.
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Royal College of Defence Studies. Mr Yoshino expressed the hope that it would be possible for Japan to send a student to the RCDS next year.
Mr Blaker undertook to look into this.
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