CONFIDENTIAL
at Oxford. The scheme would be funded by private companies, with a contribution by the British Council. the UK/Japan New Century Scholarships, would be announced during
This new scheme, to be called the visit.
Inward Investment
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Mr Hosokawa said that although Japanese overseas investment had declined overall, the UK had by far the largest share of Japanese investment in Europe, including substantial investment in R and D facilities. He hoped the favourable environment for Japanese investment in the UK would be maintained. The Prime Minister said that Japanese investment in the UK had been a huge success and would continue to be very welcome. We regarded Japanese companies in the UK in exactly the same way as we regarded British companies and would give them exactly the same support in the EC. was now coming out of recession.
Britain A combination of low inflation, steady growth and higher productivity increases than anywhere else in Europe ensured that industry had an attractive climate in which to operate. We had further reforms in mind over the next months and years which would make it even more attractive.
British investment in Japan
5.
Mr Needham asked whether any thought was being given to offering investment incentives to companies wishing to invest in Japan like those available to Japanese companies in some parts of the UK. Mr Hosokawa said that some prefectural governments, including Kumamoto, offered substantial incentives. Mr Ogura said that a company had recently been established which could provide detailed information on tax breaks and other incentives.
Export Promotion
6. Mr Hosokawa said that the UK had been the first of the European countries to take a positive approach to trade with Japan through the Opportunity and Priority Japan Campaigns. He would like to consider what Japan could do to encourage these efforts. He was pleased that British exports had done well in a number of areas, including whisky, pharmaceuticals and computers. The Prime Minister said that thought was already being given to how to follow up the Priority Japan Campaign. He had asked Mr Needham and Mr Perry for advice on how best to maintain the progress already achieved through the Priority Japan Campaign.
Market Access
7.
The Prime Minister said that we were delighted by the growth in UK exports but we still had a large bilateral trade deficit. had raised a number of detailed market access issues with the MITI
He Minister, including the liquor tax. We welcomed the offer made at the Quad talks in July to remove the tariffs on whisky and brandy and hoped that Japan would now look at the tax treatment of whisky. He had been specifically asked to raise this issue by the Scottish whisky industry. Mr Hosokawa said that import duty was no longer a
CONFIDENTIAL