TNAG-2346-FCO40-3415-Political-relations-between-Hong-Kong--Japan-and-China-1991 — Page 32

HKD 028/1

MEET WITH THE KEIDANREN AT THE FCO: 10.00, 20/NOVEMBER 1991

Present:

Secretary of State

Lord Caithness

Sir John Coles

Mr Broadbent, Economic Adviser

Mr H Ll Davies, FED

Mr Hiraiwa, Chairman

HE The Japanese Ambassador

Members of the Keidanren

Members of the Japanese Embassy

Mr Gass, APS

Mr Cummins, FED

1.

The Secretary of State opened by welcoming the delegation and

stressing the importance which the UK attached to friendship with

Japan. He noted the large increase in trade over recent years and

said that he was conscious of the significant part played by the

Keidanren in our trade relationship.

2. Mr Hiraiwa recalled with pleasure meeting the Secretary of

State in Tokyo in September 1990 at the opening of the UK90

Festival. Mr Ejiri had also met the Secretary of State on that

occasion. The delegation were grateful to the Prime Minister and to Mr Lilley for sparing the time to see them. The talks with the Prime Minister and Mr Lilley had covered various themes and had

underlined the importance of a successful conclusion to the Uruguay

Round. They had also discussed EMU and European political union in

which there was considerable Japanese interest. Mr Hiraiwa asked

for the Secretary of State's views on European integration. He had also heard about the reappointment of Mr Shevardnadze and the appointment of Mr Pankin to London and asked for the Secretary of

State's views on relations with the Soviet Union.

3.

The Secretary of State said that two concepts had emerged from negotiations in Europe among the Twelve. One was the federalist concept of a single European entity which would increase the powers of the European Commission, the European Parliament and the European Court of Justice at the expense of individual states. This was

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