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MDHIAN J622

12.

IT IS WORTH REMINDING U.S. AUDIENCES THAT THEY HAVE A NINE BILLION DOLLAR SURPLUS ON TRADE WITH THE EC AND THAT THE U.S. CAR MANUFACTURERS CONTROL FORTY PER CENT OF THE UK MARKET. THE REAL U.S. PROBLEM IS WITH JAPAN, PARTICULARLY IN THE AUTOMOBILE INDUSTRY, WHERE FIFTY PER CENT OF THE THREE MILLION JAPANESE CARS BOUGHT HERE ANNUALLY ARE DIRECT IMPORTS AND LOCAL MANUFACTURE OFTEN USES LITTLE CONTENT FROM AMERICAN-OWNED SOURCES. CLINTON WILL WANT TO DISCUSS WITH THE PRIME MINISTER HOW TO DEAL WITH THE JAPANESE

A SUBJECT WHICH IS GOING TO BE ONE OF HIS MAIN EXTERNAL PRE-OCCUPATIONS THROUGHOUT THE NEXT FOUR YEARS. HE IS KEENLY INTERESTED IN OUR IDEAS ON WAYS OF TRYING TO BREATHE MORE LIFE INTO THE G7 SUMMITS.

FCO PLEASE ADVANCE TO NO. 10.

RENWICK

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FCO WHITEHALL

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