From: Private Secretary

To: PS/No 10

JAPAN

Thank you for your letter of 23 November about a

message from the Prime Minister which Lord Young can

convey to the Japanese Prime Minister, Mr Kaifu, when they meet in Japan later this week. I attach a suggested

draft message, following consultation with the Department

of Trade and Industry, HM Treasury and the Department of

Transport.

The message refers back to the Prime Minister's

meeting with Mr Kaifu in September, and looks forward to

the possibility of a further meeting in January next year

when Mr Kaifu will be in Europe (we are still consulting

with the Japanese over dates for this meeting). The

message then briefly reviews progress on a number of

fronts since September. On Eastern Europe, Mr Kaifu

wrote to the Prime Minister on 22 November to inform her

of Japan's proposals for assistance to Poland and

Hungary.

The message thanks Mr Kaifu for his letter and

for Japan's contribution to Western assistance to Eastern

Europe. Hong Kong is also mentioned. The Japanese

Foreign Minister, Mr Nakayama visited Hong Kong in early

November, partly in response to our lobbying for Japanese

support for Hong Kong. We wish to show the Japanese that we appreciate their efforts.

PD7ACX

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