CONFIDENTIAL
FM FCO
TO TELELETTER TOKYO
TELELETTER
OF 26170OZ FEBRUARY 92
COPIES TO:
CONFIDENTIAL
CHANCERY/MOSCOW
CHANCERY/UKMIS NEW YORK
CHANCERY/PEKING
CHANCERY/WASHINGTON
POLITICAL ADVISER/HONG KONG
UKREP BRUSSELS
MR APPLEYARD
SIR J COLES
MR BURNS
MR COOPER, POLICY PLANNING STAFF.
UND
HKD
EASTERN DEPARTMENT
ERD
122517 MDTTAN 3445
FROM SR SHERRINGTON ESQ, FED/FCO
TO G FRY ESQ, TOKYO
PART TWO OF THREE
MR APPLEYARD'S TALKS WITH JAPANESE POLITICAL DIRECTOR, 25
FEBRUARY
CIS
8 =
APPLEYARD SAID THAT WE HAD REGULAR CONTACT WITH YELTSIN IN WHICH HE HAD SHOWED A GRASP OF THE ISSUES AND A DETERMINATION TO RESOLVE THEM. REFORM DEPENDED ON YELTSIN HIMSELF. HE WAS FACED BY A MIXED OPPOSITION OF OLD COMMUNISTS AND NEW NATIONALISTS (SUCH AS RUTSKOY), WITH A VAGUE SLAVOPHILE PROGRAMME. THIS OPPOSITION DID NOT YET HAVE WIDESPREAD POPULAR SUPPORT. THE ARMED FORCES DAY DEMONSTRATION HAD NOT BEEN WELL ATTENDED. THE ECONOMY WAS IN DEEP TROUBLE. THE BUDGET DEFICIT, INFLATION, HARD CURRENCY HOLDINGS AND UNEMPLOYMENT WERE ALL CAUSING SEVERE PROBLEMS, ON TOP OF THE DISRUPTION CAUSED BY THE DISINTEGRATION OF THE FORMER SOVIET UNION. THE HARVEST WAS BETTER PREPARED THIS
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