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"big ticket" Aerospace sales to the Japanese, not just aircraft but also engines as well. Japan would want to chose the best, and we believed we could offer the best.
Mr. Kaifu welcomed the Prime Minister's positive assessment of trade relations. This was "very rewarding for the Japanese Government". The Japanese Government was increasingly aware of the excellence of the aero-engines which Britain produced. The Japanese Defence Minister had already written to Mr. King to say that Japan would buy British engines for their new warship. Japanese airlines had bought Airbus. Japan would continue to look for the best products. He welcomed the Prime Minister's comment about Japanese cars.
EC-Japan Summit
The Prime Minister looked forward to the EC-Japan Summit as an occasion for worthwhile dialogue. Mr. Kaifu expressed thanks for Britain's support over the Joint Declaration. He had discussed it with M. Delors in Tokyo. He hoped the Declaration could be issued in time for the Summit, but the French were proving difficult. He hoped he could count on our support.
The Foreign Secretary described the difficulties we were facing over French demands for a phrase covering a balance of economic benefits. He thought it should be possible to find a compromise to avoid the word "balance". Mr. Kaifu had succeeded in changing Delors' attitude. Others in the Community were not so easily moved but we must continue to make the effort. We attached importance to developing a political dialogue. Mr. Kaifu reiterated his wish for our strong support for the Declaration and for its completion in time for the Summit, as a means of revitalising dialogue. The Prime Minister assured him he would continue to press the case.
Iraq
The Prime Minister described the situation in Iraq including the motivation behind the establishment of safe havens and the criteria which we had established for the relocation of our forces. He went on to say that we had no doubt that Iraq was cheating over her nuclear, biological and chemical weapons capacity and was not co-operating fully with the UN Special Commission. If, following the assessment team's return to New York, we established that Saddam Hussein was still cheating, we would take whatever action was necessary to ensure that the Iraqis did not have nuclear weapons under their control.
Mr. Kaifu paid tribute to the important role that the British Government had played over Iraq. We must do all we could to help the Kurds. Japan had sent a team of 49 to help and had contributed $60m in various forms. Japan would continue to consider what else she might do. He had discussed with President Bush in Maine Iraq's sabotage of the Special Commission's investigations. He agreed that we must ensure Iraq's compliance with UN Security Council Resolutions. It was very important not to allow the emergence of a second or third Saddam Hussein.
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