I am grateful for the opportunity to speak today to the Japanese press. A free and flourishing press is a powerful symbol of the democratic ideal. Like you, we in Britain have a strong tradition of national newspapers. More people read the national press in Japan and Britain than in other major industrialised countries. In Japan, as in the United Kingdom the media are free of interference by government: they criticise—or occasionally even praise—as they see fit. Without the free transmission of information and comment there can be no guarantee of political freedom: and political freedom [end p1] brings greater tolerance and understanding.
The same principle—the free exchange of ideas and information—should apply internationally, both within and between nations. Britain and Japan have the means and the freedom to speak to each other. We have much in common. We are democracies. We both have a Royal Family. We are island peoples with a history of powerful continental neighbours. We both have a maritime tradition, comparatively few raw materials and a need for overseas markets. [end p2] And yet, despite the close contact we have developed in various fields over past decades, we still know too little of one another; and such knowledge as we have has not always led to full understanding. The problems are obvious enough: in distance,—we are almost half a world apart; we have different historical perspectives; different languages and cultures and we face different domestic priorities. [end p3] As a result, we have had rather different perceptions of the world. And yet I believe our fundamental interests are identical. These interests are threefold: First, we both want a world of freedom and justice, for nations and individuals; second, we both want to further the system of free trade and free exchange; third, we both want to improve the quality of our lives: better social and educational opportunities, better working conditions, better application of new technologies to create jobs and wealth. [end p4] Perhaps I may expand on each of these three objectives.
IN DEFENCE OF FREEDOM AND JUSTICE
Freedom requires vigilance, for nations as for individuals. It also means resolute commitment to the defence of international law and to the principle of self-determination. If the world is not to slip gradually into violence and lawlessness, it may sometimes be necessary to defend these principles by force. We in Britain have recently had to do this. It is in the interests of every free people that aggression should be defeated. Security depends on strong defences, to deter and resist attack. And above all, it means the will to use them [end p5] when necessary. Nevertheless, security can be achieved at a lower level of armaments provided the balance is maintained.
I doubt if anyone here would dispute these principles. But they need to be applied to specific, and often fast moving situations, and to be defended by us all acting in concert. Britain's major partnerships and alliances are with the European Community, NATO and the Commonwealth. [end p6] We have many ways of maintaining contact with Japan. But I question whether we consult each other sufficiently. Economic success brings power, and this in turn brings political obligations. Japan's weight in world affairs has increased enormously. We want to know more often, and in more areas of the world, what Japan thinks. [end p7]
The pressure of events demands greater consultation amongst friends. The flashpoints of world tension are as numerous now as at any time since 1945. The Soviet Union has occupied and holds by force of arms the independent country of Afghanistan. As it seeks to extend its empire to the South, it fears the erosion of Communist regimes in Eastern Europe. Nowhere is this clearer than in Poland where the first signs of liberty have been ruthlessly suppressed. But the flame of freedom cannot be snuffed out for ever. [end p8]
Though politically and economically weak, the Soviet Union still seeks to assert itself by military means. Along the dividing line which, thirty-seven years on, still separates the two halves of Europe the Soviet Union has increased its battle strength. In both conventional and nuclear weapons it outnumbers the defences available to NATO. And in Africa, Latin America and Asia, the Soviet Union and its proxies pursue her policies of destabilisation and subversion. [end p9]
Western nations have not always resisted these pressures as strongly as they should. That is why we in NATO committed ourselves to a real increase in our defence expenditure over the coming years. We also took a decision to modernise NATO's intermediate range nuclear weapons systems in Europe, unless negotiations with the Soviet Union succeed in making the future deployment of such weapons unnecessary. We are serious about the ‘zero option’: the elimination of all longer-range land-based missiles capable of striking targets in Europe. So far, the Soviet attitude gives little hope for thinking that their intentions are as constructive or far-reaching as our own. [end p10]
This is how it looks from Europe. But you do not need me to remind you that the continuing Soviet threat to the free world has implications for Japan as well. Economic strength generates not only political responsibilities but defence obligations too. I know there is a lively discussion in Japan and elsewhere on the right level of your defence effort and expenditure, and I do not wish to be caught in the cross-fire. But you will understand the concern of a fellow maritime nation that Japan should be capable of defending herself, her territory and her vital sea lanes and other approaches. [end p11]
The Middle East is also an area where Japan has a role to play in support of our common interests. Continuing instability in the Middle East must be a serious matter to a country like Japan which depends so heavily on imported energy. We in Britain are profoundly concerned about the conflict between Iran and Iraq and the continuing dispute between Israel and her Arab neighbours. We welcomed the constructive and imaginative approach to the Palestinian problem recently announced by the American Government. It is deeply disturbing that the hopes raised by that approach have been totally overshadowed by the savage massacre in the Lebanon. Its perpetrators stand condemned by humanity the world over. [end p12]
We greatly value Japanese support for strategic countries bordering on the Middle East which have experienced economic problems, including Turkey and Pakistan. But again we would welcome closer Japanese involvement in consultations over the free world's strategy in this crucial region.
In Asia, we already work closely and effectively together. The Commonwealth is a powerful force in the area, and we all work for the same objectives of political stability and economic development. [end p13] Japan and Britain have supported the development of a strong and independent Association of South East Asian Nations. We both welcomed the Asean efforts to promote the coalition in Cambodia which we believe is a healthy step towards solving the problems of that unhappy country. We have worked together to re-settle the refugees who are the tragic victims of Vietnamese policies.
We both maintain considerable programmes of overseas aid. An increasing proportion of Japanese aid is now going to countries beyond Asia. Your aid [end p14] transmitted through United Nations and other international agencies continues to grow. This is a sign not only of the economic success of your country, of which we are all aware, but of your growing international involvement which we welcome.
It is good that Japan and Britain strive together, with the other countries of the free world, in defence of freedom and justice.
FREE TRADE
Let me now consider our second area of common concern, that of free trade and free exchange. The post-war liberal trading system has benefitted the whole free world, perhaps most especially Japan. We are [end p15] now living through a world recession. You in Japan are suffering from its effects as we are. The deficits created by the oil price rises of the last eight years, coupled with expenditures which have run ahead of output, are causing serious problems for the world banking system. Our economies are not able to expand to match past performance or current expectations. The temptation to interfere with the workings of the free trade system is strong. But to restrict imports by any means is to invite retaliation against exports. [end p16] We must not allow ourselves to be divided in that way. We all face the same problems. The responsibility for maintaining the open trading system is a shared one. Now more than ever we must work together for a balanced and reciprocal expansion of international trade. The advantages which will flow from it will be mutual and long-lasting. [end p17]
But we must be realistic. In the 1980s our economies will not grow at the rate of the past two decades. The reasons are not far to seek: the great increase in energy prices looks like limiting for some time ahead the potential for rapid expansion of production and employment.
It is this prospect which makes especially serious the problems in the commercial relationship between Japan and her trading partners—not only the United Kingdom and the European Community, but also the United States and other members of the OECD and of the GATT. The plain fact is that imbalanced patterns in our trade with Japan have persisted for at least a decade now. This cannot continue without threatening [end p18] the breakdown of the free trading system. I welcome the measures which your Government has taken during the past twelve months to dismantle some important barriers to trade. I hope that your market will become progressively more open to imports, especially of manufactured goods. What we are looking for are financial and economic policies which will lead to a steady increase in Japanese imports of manufactures. Your trading partners are watching the position closely, You will understand if I say that we are bound to judge by results.
Trade friction is rarely the fault of one party alone. Japanese export successes come from the skill, flexibility and adaptability of Japanese industry. We must match your performance. [end p19] It is sometimes said in Japan that foreign companies could easily sell more here if only they would try harder. We have tried hard. We will try even harder. But the strenuous sales efforts in Japan by some UK industries who have been highly successful in other markets have resulted in meagre successes here. I will give you some examples of comparative results by our top exporters in important sectors for British industry. We sold in 1980 £1700 million worth of aerospace products worldwide: we sold only £30 million of these same products in Japan in the same period. In the vehicle components sector we sold over £170 million to the USA, over £280 million to Germany, but only £7 million [end p20] to Japan. These figures suggest that, for whatever reason, it is harder to penetrate the Japanese market than any other in the industrialised world. If so it is surely in our mutual interest, both economic and political, to correct the situation. Any barriers to a balanced expansion of trade which may remain must be dismantled.
THE QUALITY OF LIFE
I now deal with our third area—improving the quality of life. This means using the opportunities created by new technologies to create jobs and wealth, to extend our knowledge and widen our horizons. We must look beyond the immediate economic storms. Investment in the new processes [end p21] which we are now developing will ultimately create employment and improve living conditions, even though they may at first seem to have the opposite effect. That is the history of all industrial revolutions—and the new technologies, especially the new electronics, constitute a third industrial revolution. [end p22]
Japan has shown how to tackle this new challenge. She has been particularly successful in putting new technology to work, and in getting management and workforce to co-operate in reaping the benefits—and unemployment in Japan is virtually the lowest in the world.
We should like to learn from your experience. We too have a long and distinguished history in research and new technology from Newton 's discovery of the force of gravity to the latest science of genetic engineering, from radar to nuclear energy, from jet engine to vertical takeoff, from television to carbon fibres, from penicillin to the new electronic scanner which can detect [end p23] presence of cancer. I saw the prototype in Aberdeen University two weeks ago. We are superb scientists and inventors, perhaps not always so good at turning these abilities to industrial profit. Some people fear it but over the years the new technology has created new prosperity for our people. And it has brought millions of new jobs whose existence could not have been predicted only a short time ago. One of the main themes of the Versailles Summit was the need for the seven leading industrialised countries to take the lead in stressing the positive features of technological change. [end p24] A greater exchange of information between Britain and Japan is an important element in fulfilling this aim.
Industrial collaboration between us has advanced rapidly over the past few years. Two days ago I saw the advanced robot production facilities of Fujitsu-Fanuc, who are now in collaboration with the British ‘600 group’. The leaders of both concerns assure me that co-operation has already brought substantial benefits to both parties. Another example: the British computer company ICL has developed an association with Fujitsu. [end p25] This has increased joint sales in third markets and has given us access to one another's research into the next generation of computers. And again, our largest car manufacturer, British Leyland, is collaborating with the Honda Motor Company. They are now jointly designing a new passenger limousine, for sale in both Japan and in Europe.
Britain has always welcomed inward investment by foreign companies. Already some twenty-four Japanese manufacturers are producing goods in a wide range of industries in the UK, with consequent benefit for our own industries. [end p26] These companies know that Britain is one of the most stable countries in the world, that it provides access to the whole European Community, that it has sound economic policies which are bringing down inflation (from 20 per cent to 8 per cent) and are reducing interest rates, that in the private sector the record of labour relations is good and that unlike many of our competitors we have the great advantage of secure energy supplies. [end p27] These manifold attractions are increased still further by the long-term policies on which we have embarked—to restore sound money and free our economy from artificial restrictions. We are pursuing those policies rigorously. They are beginning to show results. We shall continue to pursue them. They were not designed for temporary use. They are policies for a decade. How many other countries can offer all the advantages which I have described? [end p28]
I have talked a lot about trade and investment. But there is another form of international exchange: that of people, culture and ideas. There has been a boom of Japanese culture in Britain during the past year, crowned by the triumphant success of the Great Japan Exhibition in London: my Japanese friends have told me that no such exhibition has been mounted before abroad or in Japan. It was accompanied by a host of other Japanese cultural events, and a whole series of television broadcasts which brought knowledge of the virtues of present-day Japan to the widest possible audience. [end p29]
In Britain today Japan has become a by-word for effort, ingenuity, excellence and success. Your art and design have long excited our interest and admiration. You have a sense of tradition, a taste for beauty, a pride in loyalty and a habit of harmony.
Throughout history we in Britain have always been an outward looking people, seeking discovery and adventure.
A people with tolerance, integrity, steadfastness and courage. [end p30]
A people to whom liberty and justice are as important as the air we breathe. Rightly we have the reputation of being staunch and true friends. Building on the qualities of our two peoples let us achieve closer co-operation and deeper friendship.