CONFIDENTIAL
37
6.
Firm
Imports into Britain from Japan in sensitive sectors, such
as cars and domestic electrical equipment, remain a potential
source of friction in our bilateral relations, although Japanese
measures of self restraint are, at least for the time being,
working well. BL announced on 17 May plans to manufacture
a Honda designed small specialist car in BL plants.
proposals will be presented to Government in about two months.
Successful collaboration between BL and Honda would strengthen
the prospects for other Japanese companies investing in
manufacturing operations in Britain as a base for the whole
European market.
Conversely, the prospects will be set back
if the talks should run into opposition from other sectors of
industry and from Trade Unions as Hitachi's plans to build a
television manufacturing plant in North-East England did in 1978.
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Far Eastern Department
Foreign and Commonwealth Office
17 May 1979
CONFIDENTIAL
Page 45Page 46
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