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has regulations which seem strange or inappropriate to other countries, they should be wiped out. Japan must meet international standards".

9.

Cultural: Hosokawa promised to accept more ROK students and young people in Japan on youth exchanges etc. He would expand the numbers "drastically". The Korean programme to receive 8,000 young Japanese over a five year period ending this year would be revived at a higher (not yet decided) level.

10. Other points: Kim accepted an invitation from Hosokawa to visit Japan. He promised to do so some time next year. Hosokawa proposed to set up a personal hot line. Kim agreed, with some amusement (according to Yoo) regarding this as little more than symbolic, if not a gimmick. They agreed to co-operate closely over the development of APEC and to consult during the Seattle summit (although no bilateral meeting has been arranged). They discussed Russian nuclear dumping at sea. Yoo said that conversation over dinner was mostly about respective internal politics.

COMMENT

11.

There is no doubt that the visit has had an important impact on ROK officials and Kim YS personally. One of his close aides (Jin Park) told us last night that it marked a new beginning. Yoo said that all those on the ROK side who came into contact with

It Hosokawa were startled by his style and presentation. represented a huge shift from the approach of previous Japanese

He was a man with whom Kim YS could do business. Leaders.

The

media and public generally appear to have been impressed by Hosokawa and are expressing optimism that he represents the kind of generational shift which is necessary if the two countries are to move closer together.

12. That said, anti-Japanese sentiment in the ROK is entrenched; the ROK deficit with Japan remains critical despite the strong Yen; suspicions over Japan's real ambitions towards the Peninsula, the East Asian Region and nuclear weaponry remain strong amongst both politicians and the general public. A Leading member of the National Assembly told DHM that Korea had much to fear from the

That could lead development of a rivalry between Japan and China.

the Japanese to seek a political role in the region consistent with their economic strength. He regretted the lack of substance to emerge from the visit. Yoo's response was that the meeting was

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