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CONFIDENTIAL
reply might be that it is for all countries to dismantle protectionism and ensure the success of the Uruguay Round. (This point seems to be covered in the right way, albeit briefly, in the draft speech to the Japanese Economic Organisations.)
Bilateral Economic Issues
6. The Japanese will expect the Prime Minister to raise the Tokyo Stock Exchange. We will probably also have to register our potential concern that whisky-like products recently introduced as "spirits" may undermine the benefits of the tax reform for Scotch whisky. (At the time of the Prime Minister's visit it is unlikely that we shall be able to judge the market impact and it may be more a question of putting down a provisional marker.) These points should be made to Mr Kaifu. But the number of such problems which we have to discuss is now very few. The main message we wish to convey to the whole Japanese audience is our keenness that British industry should take advantage of the opportunities that have been opened in the Japanese market. We ought to make a particular plug on aerospace sales (BAe 146 or Fokker 100 (with Rolls Royce engines); HS 125; Airbus' varieties (with Rolls Royce engines); Boeing 747-400s or MD11s with Rolls Royce engines; and the V2500, developed primarily by Rolls Royce, Pratt and Whitney and a consortium of Japanese companies). We should also register our keenness for collaboration in Third Country projects (we have an active dialogue although we have not succeeded in bringing to fruition any new collaborative projects since the Samanalawewa Dam).
7. And it would be helpful to put in a strong word about our interest in tourism gaining an increasing proportion of the
rising number of high-spending Japanese who are travelling abroad (our aim is to attract more than 1 million visitors from Japan - compared to the present figure of about 400,000 - who should spend £500-600 a time and hence be worth more than £ billion to our balance of payments each year).
8. Our wish to encourage further Japanese manufacturing investment is rightly another major theme of the Prime Minister's speech. There is one particular project - Mitsubishi Electric's semiconductor project - for which Scotland is in contention with Germany and where a private word with the President of the company may be helpful. We do not wish to over-emphasise the UK's share of existing investment, but to stress the quality of the investment environment in the UK, the support which the British Government gives, and our willingness to accept more Japanese investment.
9.
British
Another key area is science and technology. scientists could be doing far more to make themselves aware of
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