TNAG-1876-FCO40-2667-Relations-between-Hong-Kong-and-Japan-1989 — Page 67

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5 CONFIDENTIAL

tural Relations

Mr. Kaifu said that cultural relations between Britain and Japan were very important. He was grateful for the Prime Minister's support for the UK 90 Festival in Japan and the Japan Festival to be held in the UK in 1991. The Prime Minister said that she hoped both would be a great success. Mr. Kaifu said he understood that HRH The Prince of Wales was considering whether to become a Patron of the 1991 Japan Festival. He could confirm that the Crown Prince of Japan would do so.

Japanese Politics

The Prime Minister said she would be interested to hear Mr. Kaifu's views of the future of Japanese politics and society and how they were changing. She believed it was very important in politics to take a long-term view and work towards it.

Mr. Kaifu said that it was a time of great change in Japan. The era of blind pursuit of affluence was over, and it was time to consider what Japan had lost in spiritual richness. Moreover, Japan had reached a point where people wanted genuine fairness and equality in society. This applied particularly to women: their contribution to Japan's society had to be more fully recognised. Another factor for change was that Japan was an ageing society. Each year one million people passed the age of 65. Birth rates had fallen and were now 1.6 per family. Mr. Takeshita had this problem of an ageing society in mind when he embarked on his tax reform. Japan had to consider what kind of vision and hope it could offer its senior citizens. He was also greatly concerned by the decline of the family in Japan, which he thought lay at the root of many of the problems, drugs, youth delinquency and violence. He wanted to revive the family and the role of parents.

The Prime Minister said she very much agreed with Mr. Kaifu on the importance of family. She thought that television had been a great disruptive influence on family life.

Before these themes could be developed more fully, the talks had to break for the joint television interview. will receive a separate transcript of this.

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Over dinner, the Prime Minister asked Mr. Kaifu about the likely date of an election in Japan. Mr. Kaifu said that he was anxious to establish his draft budget and set out his wider policies before approaching the electorate.

China/Hong Kong

There was also a brief discussion of China and Hong Kong over dinner. Mr. Kaifu said that Mr. Ito had recently been in Peking with a parliamentary delegation and seen Deng Xiaoping and other senior officials. He had found them committed to continuing the policy of reform and openness to the outside world. The only blank spot had been their refusal to admit that anything untoward had happened in June. This was, of course, not acceptable. Mr. Kaifu agreed with the Prime Minister that it was very desirable to help restore confidence in Hong Kong. He believed that Japanese businessmen would continue, indeed increase, their investment in Hong Kong.

CONFIDENTIAL