CAB128-94_A1b — Page 131

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freedom over intellectual property there could not be progress in international trade. She had pointed out that no company would be prepared to do research unless its patents were properly protected. She had discovered subsequently that the Fujitsu company had exploited certain important American scientific advances in the computer industry despite the fact that they had been patented. There had been a major court case which Fujitsu had lost. on a more positive note, Fujitsu representatives had said that although Japan was producing many more engineers than Betain, Britain already had computers in every school and Gesuch further ahead in this area than Japan.

In brief discussion, it was noted that on a recent visit to Japan the SECRETARY OF STATE FOR SCOTLAND had talked to senior representatives of fifteen major companies. All had stressed the importance of 1992. They believed that with the advent of Single Market it was essential for Japanese companies koelop manufacturing facilities in Europe. Japanese companies had found that labour conditions in Britain were better than in West Germany.

than in West Germany. There were too many restrictive tices in West Germany, while in the United States the pus Hispanic workers created language problems. Vibe Japanese had now realised that their manufacturingies set up in Britian would be able to distribute their products in the rest of the European Community after 1998. At the same time the reduction of external barrier after 1992 might make it more cost-effective for Japanese companies to export their goods direct to the Europeareunity rather than to set up manufacturing outlets. West Germany had far larger balance of payments surpluses with other European Community countries than did Japan Test German restrictive practices, which a Social Charter protect, presented

a serious problem.

1

time

nister's

sit to

he Soviet tion

2-23 September

989

THE PRIME MINISTER said that on her return

Tokyo

nokyo she

The

had stopped first in Bratsk in Siberia. This had been the first visit by a British Prime Minister to Siber group of senior Soviet officials who had welcomed Bratsk had stressed their support for perestroik

in

Continuing, the PRIME MINISTER said that the wide-rang discussions with President Gorbachev in Moscow had been successful. Mr Gorbachev seemed to be much more self assured than when he had last visited London. Nationalities Plenum, just concluded, delegates had approved a policy of giving greater freedom to the constituent Republics while insisting they should remain

At the

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