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The Prime Minister said he would respond briefly before inviting further discussion. He hoped the Group would spend time on the world economic down-turn. This had been bigger in Japan than normal. The Japanese should be embarrassed by the size of their trade surplus; this was causing difficulties in the EC and the US. It would be interesting to press the Japanese about the room for further growth stimulus. They were likely to be much exercised by the forthcoming G7 Summit. The G7 was the only forum in which they had a global role. They would want the Summit to be a success. In the Prime Minister's view recent Summits had not been successful. They had lost their original purpose and format of informal exchanges between leaders; there was too much pre-cooking. He was keen to return to the old pattern. It would be interesting to hear the Japanese plans. One of their ambitions, surely, was to make very serious progress on the Uruguay Round. The US position was clearly crucial; we and the Japanese would be watching carefully for any conditions imposed on extension of the fast-track. Anything gleaned from the Japanese on their views on the GATT or on the world economy would be helpful.
Beyond that, the Prime Minister had two important messages. First our welcome for Japanese inward investment was as warm as ever. We continued to offer the best prospects and strong advocacy for exports into Europe. Secondly, there had been some Japanese doubts about the UK's commitment towards Europe partly as a fall-out from the Maastricht debate. It would be helpful if the British members of the Group could reaffirm strongly that Europe was central to UK policy.
Sir James Eberle recalled that when he and Mr. Howell had seen Miyazawa in October, Miyazawa had been particularly interested in Maastricht. Turning to the Northern Territories, he wondered whether it was worthwhile to explore non-governmental views on whether recourse to the International Court of Justice would be helpful to get this issue off the political agenda.
Sir John Coles said that this was a new thought to us. Mr. Goodlad commented that the Russian attitude to the International Court was not very positive. (There was however general consensus that the thought could be explored informally.)
Lord Jenkins, in a rather unfocussed intervention, said that unlike the last meeting when Japanese participation had been disappointing, there was a good turn out this time. The Group would wish to look forward to what could be
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