CONFIDENTIAL
JAPAN AND ANGLO-JAPANESE RELATIONS
Background Note
1.
Japan, as the second largest industrial power in the non- She communist world, has widespread interests and influence. primarily exercises this influence in economic and commercial
relations.
However, the Japanese still feel vulnerable, having few raw materials and practically no indigenous oil or coal. home they are particularly sensitive to signs of increasing inflation and the country is suffering from historically high levels
of unemployment.
Representative democracy is firmly rooted,
At
although there are still a few elements who support extremism, eg the Japanese Red Army. The conservative Liberal Democratic
but
Party has been in power virtually all the time since the War, at the last election had only a tiny majority in the Diet over
Prime Minister Ohira may be, tempted the other parties together.
to build on his Party's success in the local elections this April to call a general election later this year.
2.
Japan's economic and defence relationship with the United States is far more important to her than any other external factor. In 1978 she concluded a Treaty of Peace and Friendship with China and, with increasing commercial and political contacts with ASEAN
an "Asian power" and Australia, Japan sees herself increasingly as Japan's economic interests make the Middle East with its oil and Western Europe's markets for her exports areas of special
attention.
Relations with the Soviet Union are cool, but Japan seeks a balance in her relationships with China and with the USSR.
British Interests British.
3.
Since the War, the over-riding British and Western interest i Japan has been that it should remain a stable, responsible and democratic member of the Western industrialised world, and it is important that we should maintain a wide-ranging political dialogue with the Japanese. There is still a lack of understanding about
More could be done in
Japan in Britain which needs remedying. Japan to increase knowledge about Britain, but already the role of
English as the first foreign language and respect for British
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CONFIDENTIAL
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