TNAG-2016-FCO40-2871-Relations-between-Hong-Kong-and-Japan-1990 — Page 182

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The

time might be approaching when the Soviet Union would be

willing to talk seriously about the Northern Territories. inhibition about opening up territorial issues was now less

irrelevant and strategic concerns were greatly reduced. The

fact that the post World War II peace settlement was now under

way in Europe meant that sooner or later there would be an Asian

peace settlement too. In other respects the thaw was reaching

the Far East. China and Indonesia were resuming relations;

Gorbachev had met Roh Tae Woo; and there was now to be a meeting

between the two Koreas. Against this background a change in

Soviet-Japanese relations became more probable (Fujii).

But

For a long time to come the Japanese approach to Eastern Europe

would be one of fact finding and establishing relationships.

for the longer term there was great respect for the skilled work forces there and Japanese firms would eventually invest.

Eastern Europe might not take too long to catch up with the West

(Ishihara).

Need for some overarching structure to bring Japan closer to

Europe (Lord Jenkins). In reply: UK has been working for just

that through extending the G7 arrangements, the CSCE, and the

recent NATO seminar (Cooper).

What was Japan expected to do with its money? India and the

ASEAN countries were urging Japan not to invest in Eastern

Europe; Europeans were doing the opposite. The United States

was insisting that Japan should invest more in its own

infrastructure. Others said that Japan should give more

development aid. The real drag on development was in fact the

US deficit. So long as this remained the US would be such an

attractive location for capital assets that no-one would think

of investing elsewhere (Oba).

Soviet economic development would depend overwhelmingly on raw

materials and the Far East was a decisive area. So Japan would

matter for the economic development of the Soviet Union. This

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