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164376

MDLIAN 1546

KAIFU WILL ANNOUNCE THE RELEASE OF THE SECOND TRANCHE CONE BILLION DOLLARS) OF THE THIRD YEN LOAN. THERE WOULD BE FURTHER HUMANITARIAN AND FOR THE VICTIMS OF RECENT FLOODS (1.5 MILLION DOLLARS) BUT JAPAN WILL NOT YET BE IN A POSITION TO RESPOND TO CHINA'S REQUEST FOR AN ENERGY LOAN OF 700 BILLION YET CABOUT 5 BILLION DOLLARS).

5.

WE ALSO ASKED ABOUT MEDIA SPECULATION THAT THE EMPEROR MIGHT VISIT CHINA AS EARLY AS NEXT YEAR (THE 20TH ANNIVERSARY OF

NORMALISATION OF RELATIONS). KITERA SUGGESTED THAT THE CHINESE INVITATION SHOULD BE SEEN PARTLY AS A SIGNAL OF THEIR WISH FOR CLOSE BILATERAL RELATIONS. WHILST THE JAPANESE WOULD PROBABLY AGREE IN PRINCIPLE TO A VISIT TAKING PLACE, 1992 WAS NOT A RUNNER. THERE WERE MANY OTHER COUNTRIES TO BE CONSIDERED. AN IMPERIAL VISIT

WAS MOREOVER A VERY VALUABLE CARD AND SHOULD BE PLAYED WITH CARE.

FIELD

YYYY

ΜΑΙΝ

60

LIMITED

FED

HKD

NEWS D

PLANNERS

PUSD

NNNN

DISTRIBUTION

60

RAD

PS/LORD CAITHNESS

SIR J COLES

MR BURNS

2

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