CONFIDENTIAL
relations. These remain excellent with no significant problems outstanding, with the effective resolution of
the argument over air services (on which the Prime Minister wrote to Mr Kaifu on 9 April) in the May talks.
The Japanese have agreed to accommodate the additional
services requested: it is for discussion between the
airlines how those services may be accommodated within
existing slots.
Bilateral contacts have strengthened since the
adoption in 1987 of a strategy towards Japan that sought
to establish a relationship encouraging political links
to offset the emphasis on economic and trade issues. The
reduction of the rate of increase in the trade deficit
from 20% between 1987 and 1988 to 1.3% between 1988 and
1989 contributes. A large number of high-level visits to
Japan are proposed for the remainder of 1990. The
Princess Royal will visit Japan in September for an IOC
meeting and to attend the UK90 Cultural Festival. The
Prince and Princess of Wales will attend the Enthronement
of the Emperor on 12 November. The Duke of Edinburgh will visit from 16-18 November privately but is expected
to call on the Emperor. In addition to the Foreign
Secretary's proposed visit to Japan in September, and a
visit by Lord Brabazon (dates yet to be confirmed), several other Ministerial visits to Japan are planned
including Mrs Chalker (July), Mr Howard (September),
Mr Luce (September/October) and Mr Hunt (November).
Governor of the Bank of England will be visiting Japan in
October. Mr Muto, Japanese Minister of International
Trade and Industry, will be visiting the UK in
The
CONFIDENTIAL
-10-