TNAG-2016-FCO40-2871-Relations-between-Hong-Kong-and-Japan-1990 — Page 207

FROM PRIVATE SECRETARY

PS/NO 10

CONFIDENTIAL

BILATERAL WITH PRIME MINISTER KAIFU AT HOUSTON

The Prime Minister will be holding a bilateral

meeting with Mr Kaifu at Houston on 8 or 9 July. This

will be their third meeting since the Prime Minister's

visit to Japan in September 1989: their last meeting, on

12 January, during Mr Kaifu's tour of Europe, was very

successful. Despite widespread speculation that

Mr Kaifu's political base is insufficient to guarantee

him a long tenure of office, his standing in the opinion

polls remains high. None of his rivals dare mount a

challenge at present: the continued period of

uninterrupted economic growth (43 months, the second

longest since the war), 5% GNP growth in 1989/90, and the

successful conclusion of the Structural Impediments

Initiative (SII) talks with the US are all likely to

enhance his popularity further.

The Japanese have asked to exchange views on

on two of

their major concerns at the Summit, aid to the Soviet

Union and China. It is also an opportunity to reinforce

our concerns with them on the Uruguay Round and South Africa. Mr Kaifu is also likely to enquire about EC

Our main objectives are to:-

integration.

TYQABS

CONFIDENTIAL