CONFIDENTIAL
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.
4. There is still a lack of knowledge about Japan in Britain
which needs remedying. More could be done in Japan to increase
knowledge about Britain, but already the role of English as the first foreign language and respect for British culture help
our interests. Princess Chichibu, who is Patron of the Japan/
British Society in Japan, is due to pay a visit to Britain as
a guest of the Government in June.
Political Background
5.
The Conservative Liberal Democratic Party has been in
power virtually all the time since the War, but at the last election had only a tiny majority in the Diet over the other
parties together. Now that Mr Ohira has succeeded Mr Fukuda
as President of the Party and Prime Minister, he may be
tempted to build on his Party's success in the local elections this April and to call a general election later this year. In the meantime, Japanese policies continue much as before under a new and relatively unknown team, although Mr Sonoda has been retained as Foreign Minister and Mr Ohira himself has wide experience as a former Foreign Minister and Minister
of Finance.
FAR EASTERN DEPARTMENT
FOREIGN & COMMONWEALTH OFFICE
17 May 1979
CONFIDENTIAL
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