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FM TOKYO
TO IMMEDIATE F C O TELNO 562
OF 05070OZ JULY 91
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Mr Paul
MKB 12/3
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INFO ROUTINE HONG KONG, UKREP BRUSSELS, WASHINGTON, UKMIS NEW YORK
MY TELNO 539 : UK/JAPAN PRIME MINISTERS' BILATERAL
1.
THE FOLLOWING CONTAIN SOME COMMENTS ON THE ITEMS PROPOSED IN MY TUR (NOT TO ALL) FOR THE AGENDA OF THE LUNCH ON 14 JULY.
J
2.
BILATERAL ISSUED. THIS WILL BE THE FIRST BILATERAL SUMMIT SINCE MR MAJOR TOOK OFFICE AND THUS AN OPPORTUNITY TO CONFIRM TO THE JAPANESE OUR CONTINUING HIGH-LEVEL COMMITMENT TO OUR POLITICAL DIALOGUE AND TO THE MEDIA THE OVERALL HEALTH OF THE RELATIONSHIP. KEY ASPECTS OF THIS ARE INWARD INVESTMENT AND PRIORITYJAPAN. THE JAPAN FESTIVAL 1991 ALSO DESERVES A MENTION. THE TWO LEADERS NEED NOT SPEND MUCH TIME ON THESE POINTS. THE IMPORTANT THING IS TO BE ABLE TO GIVE THE PRESS AFTERWARDS CERTAIN KEY MESSAGES - UK CONTINUED WELCOME FOR DIRECT INVESTMENT IN MANUFACTURING, JAPANESE SUPPORT FOR PRIORITY JAPAN ETC. ON THE POLITICAL SIDE, IT WOULD BE SELL RECEIVED IF WE THANKED THE JAPANESE FOR THEIR BURDEN-SHARING CONTRIBUTION AND FOR THEIR WIDER INTERNATIONAL CONTRIBUTION INCLUDING THE SENDING OF MINESWEEPERS TO THE GULF (SEE ALSO PARA 6 BELOW).
AN IMPORTANT POINT FOR US IS BIG TICKET SALES, PARTICULARLY AEROSPACE. THE MESSAGE IS THAT:-
3.
NEITHER THE BRITISH NOR THE EUROPEAN SHARES OF THE JAPANESE AEROSPACE MARKET REFLECT THE RESPECTIVE SHARES OF THE WORLD MARKETS. - OF COURSE IN THE CASE OF AIRLINES, DECISIONS REST WITH PRIVATE COMPANIES, BUT THAT IS NOT SO IN GOVERNMENT PROCUREMENT. SUBSTANTIAL ORDERS FOR ROLLS-ROYCE AND BRITISH AEROSPACE WOULD BE THE CLEAREST POSSIBLE ANSWER TO SUSPICIONS THAT THE JAPANESE MARKET, BOTH CIVIL AND DEFENCE, IS WEIGHTED AGAINST EUROPEAN SUPPLIERS FOR ESSENTIALLY POLICIAL REASONS.
- THEY WOULD ALSO GIVE A POWERFUL BOOST TO PRIORITY JAPAN AT A TIME WHEN BRITISH AND EUROPEAN EXPORTS HAVE BEGUN TO FALL, AFTER SEVERAL YEARS OF STRONG GROWTH.
OUR LATEST INFORMATION IS THAT BOTH THE ANA AND JAL ENGINE ORDER
1
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