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GOVERNMENTS AT MANY LEVELS. THE FOREIGN SECRETARY WOULD TALK TO KOZYREV AT THEIR NEXT MEETING. IF MIYAZAWA THOUGHT IT HELPFUL, THE PRIME MINISTER WOULD BE PREPARED TO SEND A MESSAGE TO YELTSIN BUILDING ON THEIR RECENT MEETING. WE WOULD WELCOME AN INDICATION OF THE BEST TIMING FROM THE JAPANESE STANDPOINT. SAITO RESPONDED ENTHUSIASTICALLY TO THE OFFERS AND UNDERTOOK TO COME BACK WITH AN INDICATION OF THEIR PREFERRED TIMING FOR A MESSAGE.
13.
APPLEYARD ASKED HOW THE JAPANESE WOULD PLAY THE NORTHERN TERRITORIES ISSUE IN RELATION TO THE G7. SAITO SAID THAT THE JAPANESE INTENDED TO SAY THAT THEY SUPPORTED AND WOULD ASSIST YELTSIN'S DEMOCRATIC REFORMS, CONTINUING EMERGENCY ASSISTANCE. IT WAS, HOWEVER, TOO EARLY TO GIVE MAJOR FINANCIAL AID AS THERE WAS NO ECONOMIC REFORM PROGRAMME IN RUSSIA AND BECAUSE OF THE TERRITORIAL ISSUE. MR COOPER ASKED WHAT THE JAPANESE WANTED FROM THE RUSSIANS ON THE NORTHERN TERRITORIES BEFORE THEY COULD GIVE LARGE SCALE ECONOMIC ASSISTANCE. SAITO REPLIED THAT AGREEMENT IN PRINCIPLE ON JAPANESE SOVEREIGNTY WAS NEEDED. THEREAFTER THE JAPANESE WERE PREPARED TO BE FLEXIBLE ON THE TIMING OF THEIR
ACTUAL RETURN.
14.
APPLEYARD STRESSED AGAIN THE URGENCY OF RUSSIA BECOMING A MEMBER OF THE IMF AND IBRD. HE HOPED THAT IT WOULD BE POSSIBLE TO PUT TOGETHER A SUBSTANTIVE PACKAGE BEFORE THE MUNICH SUMMIT. IT WAS IMPORTANT THAT THE RUSSIANS PUT FORWARD THEIR IDEAS TO THE IMF WITHIN THE NEXT MONTH AND THAT IMF MEMBERSHIP PROCEDURES WERE COMPLETED AT THE EARLIEST POSSIBLE DATE. WE WOULD SPEAK IN THE G7 IN FAVOUR OF A ROUBLE STABILISATION FUND WITHIN THE CONTEXT OF AN IMF PROGRAMME, WOULD URGE THE CONTINUANCE OF EMERGENCY AID AND THE SUPPORT OF DEBT RELIEF. WE WERE GRATEFUL THAT THE JAPANESE HAD AGREED TO HOST THE THIRD AID CONFERENCE: IT WAS IMPORTANT IN THE RUN-UP TO THAT TO ENSURE COORDINATION AND STIMULATE THE SPEEDY DISBURSEMENT OF AID.
15. SAITO SAID THAT THE JAPANESE SUPPORTED RUSSIAN MEMBERSHIP OF THE IMF. THEY COULD GO ALONG WITH A ROUBLE STABILISATION FUND, THOUGH THEY HAD TO IRON OUT DIFFERENCES WITH THEIR FINANCIAL AUTHORITIES OVER THIS. THE JAPANESE HAD NOT REALLY CONSIDERED THE QUESTION OF DEBT RELIEF, SINCE THE AMOUNTS AT STAKE FOR JAPAN WERE NOT LARGE. LAST YEAR THE JAPANESE GOVERNMENT HAD AGREED A CREDIT OF DOLLARS 500 MILLION, BUT THIS HAD NOT YET BEEN DISBURSED. THEY HAD JUST BEGUN TO DISCUSS THE PRACTICALITIES WITH RUSSIAN POLITICIANS. THE JAPANESE BELIEVED THAT FOR THE MOMENT GRANTS OF FOOD AND MEDICINES WERE MORE IMPORTANT AND IN
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