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Dear Kichand,
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14 July 1991
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THE PRIME MINISTER'S LUNCH WITH THE JAPANESE PRIME MINISTER
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Thank you for the briefing that was provided for Mr. Kartu lunch with the Prime Minister today. Thank you too for the supplementary briefing on the Japanese internal scene.
I attach a list of those who attended the lunch. The atmosphere was friendly and the Prime Minister took quite a liking to Mr. Kaifu.
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The Prime Minister opened the discussion by hoping that tenorh
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would be the first of many meetings between the two Prime Ministers in Japan or London. We were very pleased at the state of our bilateral relations.
statkiews Mr. Kaifu agreed. UK/Japanese relations were basically excellent. In the main, we had the same position on G7 Summit issues. Mr. Kaifu had been interviewed that morning by the BBC. One of the questions had been about trade matters (which the Prime Minister had indicated should be discussed). He had replied that the British Government's efforts in the 'Opportunity Japan' campaign and the response of the Japanese Government had led to UK exports nearly doubling over three years.
He had endorsed the follow-up campaign of 'Priority Japan' and had looked forward to continued positive co- operation. Mr. Kaifu had visited the site of the Japan Festival, which emphasised the importance of strengthening our bilateral ties in all areas, including culture and the arts. He had taken time out to see 'Phantom of the Opera'. People of our two nations could share the same sentiments and pleasures and could be touched by the same scenes. As regards trade, Mr. Kaifu was pleased that the imbalance had been reduced by 15 per cent last year. Japan would continue to promote imports and the restructuring that made them possible. Our joint efforts would ensure we avoided problems. Mr. Kaifu understood that the Prime Minister was interested in visiting Japan. He looked forward to welcoming him there at the earliest opportunity.
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The Prime Minister said that although he had travelled a good deal in the Far East he had never been to Japan, and looked forward to the opportunity to discuss the growing importance of issues which our two countries needed to consult about. very pleased that the trade gap was closing. He could also assure Mr. Kaifu that we would continue to take a robust position within the Economic Community on Japanese cars. We did not want restraint on trade. We were also very keen to be able to make
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