CONFIDENTIAL
In
until the US does. They have inched their contacts with
the SAG up to senior official level. Although they are negotiating with the ANC for a visit by Mandela in the autumn, they are not yet prepared to invite de Klerk. view on their considerable trade with South Africa the Japanese want to ensure that any future South African Government will follow sensible economic policies, but they are unsure how to help achieve this. Against this background the Prime Minister may wish to brief Mr Kaifu on her talks with Mr Mandela. She may also wish to say:
This
Profound and irreversible changes de Klerk has accomplished deserve international response. will help reduce risk of right-wing backlash.
UK, Italy, Netherlands, Spain, Denmark have already relaxed national measures. US Administration would probably have done so were it not constrained by legislation. EC has accepted principle of relaxation in response to change.
Japan should be prepared to act too.
South Africa will need growth and external finance to tackle successfully underlying socio-economic
problems.
Failure to do so could, undermine
political settlement. Main source will be private sector. We should encourage international financial
institutions to help.
CONFIDENTIAL
-3-