The 24th Annual Meeting of the UK-Japan 21st Century Group was held at Matfen Hall, near Newcastle-upon-Tyne from 27-30 March 2008. The meeting was chaired by Rt Hon Lord Cunningham of Felling, UK Co-Chairman and, in the absence of Mr Yaushisa Shiozaki, Japanese Co-Chairman, by Mr Tadashi Yamamoto, Secretary-General, Japan-UK 21st Century Group.

The Japanese delegation paid a call on Rt Hon David Miliband MP, Secretary of State for Foreign & Commonwealth Affairs, at the Foreign & Commonwealth Office, accompanied by Lord Cunningham before travelling north to Newcastle. The Foreign Secretary emphasised the importance the British Government attached to a successful outcome of the G8 Summit in Japan in July and their willingness to work with the Japanese Government to that end, notably on climate change and Afghanistan. Another crucial topic was the reform of international institutions, including the G8 itself.

The Conference

At the outset Lord Cunningham read out a letter from Prime Minister Gordon Brown. Mr Yamamoto read a short address by Mr Shiozaki in which he said that the meeting was well timed in view of the Tokyo International Conference on Africa��s Development (TICAD IV) conference in May and the G8 Summit in July in Japan.

Session 1: Latest Developments in Japan and East Asia

Japanese delegates described the political impasse in Japan over the appointment of a new Governor of the Bank of Japan and the adoption of a bill on the extension of a gasoline tax. The government had not been able to force through this bill through the Diet.The Prime Minister had been backed into a very tight corner. The current impasse was likely to continue for several months, with a consequent slowing down of the reform process. Mr Fukuda had, however, managed to inject a more positive tone into Japan��s relationships with China and Korea.

British delegates hoped that the British Government would make every effort to work with Japan in international institutions towards the achievement of key mutual objectives.

Session 2: Latest Developments in the UK and Europe

The conference coincided with the State Visit of President Sarkozy of France. The Japanese delegates showed especial interest in how the UK would position itself in the EU, given the apparent shift in French attitudes towards defence and security matters, in particular. Delegates noted that President Sarkozy��s efforts to improve relations with the US and his declaration that France should fully reintegrate with NATO could have profound implications for the EU and Britain. Questions were raised about his ability to overcome opposition from Gaullists to this major break with the past, but his commitment seemed total. For the UK this represented an opportunity to develop closer relationships with both the French and Germans whose hitherto unconditional ties were under strain.

In the UK there was wide underlying support for the EU even if the public often seemed cynical about the unwieldy nature of its governance and the cost of Brussels and other institutions. Given that the Conservative Party��s fortunes had greatly improved over the past year, eyes were increasingly focused on how that party��s policy on Europe would evolve.

Japanese delegates said that Japan had followed closely the divisive internal debate within the EU about the ��European Constitution��. Would the compromise enshrined in the recently agreed treaty be workable? Would a 27 member EU share common values and, eg, be able to formulate a common policy towards Russia? Talk of expansion of the EU to include countries like Ukraine, Croatia and Macedonia would irk the Russians and was likely to stimulate markedly different reactions among EU members. What would be the role of the new President and ��Foreign Minister��? The meeting noted that the role of the President was not clearly defined. The nature of the role would depend a good deal on the personality and calibre of the individual elected.

The Group noted the importance of encouraging further educational exchange between the UK and Japan across a range of disciplines, with particular reference to science and technology. It welcomed the success in developing Japanese studies in the UK over the past year, in line with past recommendations.
 

Session 3: The Growth of East Asian Developing Economies: How this may Affect the Strategic Interests of the UK and Japan

The debate focused principally on Japan��s role in a world in which fundamental shifts of power were taking place. Where was Japan? While the overall economic strength of the west was still substantially greater than that of Asian countries few disputed that with current growth rates, the GDP of the East might well surpass that of the West before 2050 (cf 1820: East 60%; West 40%). This trend had encouraged emerging economic powers to seek greater political influence. Would the world now be faced with a future of great power competition. Or would it be possible to reform existing international institutions, which had been designed for a very different world? The interests of the UK and Japan might not always converge but both depended on viable international institutions for their future security and prosperity. Japan��s role was especially important, given its geographical location. Delegates noted its efforts to promote the building of an East Asia regional community, and to include India in this process.

It was not desirable to think in terms of east-west blocks. The UK, and perhaps, the EU as a whole, and Japan could play a crucial role in persuading China to operate within the framework of existing institutions and to work with them and other emerging economies on their reform. Japan��s domestic political uncertainties often obscured the substantial contribution she made to the effectiveness of these bodies. The latter should be recognised and enhanced through even closer cooperation.

Session 4: International Development Challenges for Japan and the UK in their development Assistance Effort in Africa and other areas

The debate highlighted the different approach to development aid in Britain and Japan. Japanese delegates emphasised Japan��s experience in project aid and her particular skills in delivering projects, in particular in the field of infrastructure. Public/private partnership was the key to their success. The costs of such projects were more easily controllable and management of them more easily accountable. They encouraged employment and generated profits which could be invested in further projects. Japanese delegates expressed a high regard for the UK��s knowledge and experience of aid distribution in Africa. While they were not convinced that budget aid was the best approach to all development requirements, they greatly respected the UK��s achievements in the fields of human rights, the alleviation of poverty and healthcare, inter alia.

Delegates from both sides hoped that the UK might give careful consideration to collaboration between the two countries in delivering project aid. Africa��s infrastructure needs constituted an en excellent opportunity for joint practical collaboration between the two countries. Working together they could attract significant private sector finance achieve greater success than by going it alone. Although there were already fairly extensive contacts between UK Department of International Development (DfID) and their Japanese counterparts, forthcoming radical changes in the structure of the Japanese aid agencies provided an excellent opportunity for even closer collaboration. Catalysts for a closer dialogue were the TICAD IV conference in Japan in May and the search for a response to the rapid expansion of Chinese, Indian and other developing countries�� development assistance in Africa.

The latter were driven largely by the search for natural resources. Concern had been expressed in many quarters that the methods adopted by the Chinese, in particular, flouted international guidelines and rules. There were fears that China would take a soft line on issues such as human rights and good governance. While these concerns were real it was also noted that Chinese development assistance had beneficial rather than negative consequences. The conclusion was that it was vital for both countries to engage with the Chinese with a view to maximising development potential in Africa, encourage transparency and shape their aid policies. This could be a joint UK/Japanese effort.

Session 5: Climate Change

The strong view of delegates was that current policies lacked urgency. Not enough was being done to sensitise public opinion to the very real dangers. Public opinion, especially in Japan, was complacent. The attitudes of China and India, in particular, and the new US Administration would be crucial. Very difficult economic choices had to be made; this was no excuse for inaction. The G8 Summit was an opportunity that could not be missed. Much more forceful action by governments was required urgently.

In the search for areas where joint action between the two countries might produce benefits, it was noted that Japan adopted a technology based approach. Japan was especially concerned to engage the Chinese and the Indians in the search for technological solutions to deal with emissions resulting from their economic growth, notably from coal fired power stations. The technology probably existed to make a substantial difference but negotiations over IPR had been challenging. Japan and the UK were working closely on scientific research but there could be more collaboration between private sectors and in the field of technology transfer. The Rolls-Royce project on high performance materials with the Japanese National Institute of Materials Science was an exception to the rule. There should be a real increase in contacts at all levels and across all sectors to share experience, eg on renewables, and across all sectors.