Japan has been endeavoring to develop closer ties and promote

diversification in the field of economy and economic cooperation with

Brazil, Mexico, Argentina, the Andean nations, and the countries of Central
America, and the Caribbean area, taking into consideration the intra-
regional balance.
It should be specially noted that a number of agreements concerning
economic cooperation with Brazil were concluded in 1981. In July, it was
decided that necessary assistance would be extended from the governmental
organizations concerned to meet the additional financial requirements
resulting from the reviewing of the aluminum refinery plan in the Amazon.
An official exchanged-note concerning the yen loan (\22 billion) allocated
to the consolidation plan of ports and harbors was signed in November
1981. Regarding the development plan of the Carajas iron mine in Brazil, a
general agreement was reached when Planning Minister Delfim Netto
visited Japan in December to the effect that Japan would provide financial
loans amounting to $500 million. It also deserves special mention that the
contract worth $318 million was reached through the efforts of the mission
which was dispatched to Mexico to enhance trade exchanges.
Meanwhile, aiming at the implementation of effective assistance to
Latin America, a research group for the evaluation of economic and
technical cooperation was dispatched to Peru as the first country to be taken
up in the region. The group made evaluations on the current status of
economic and technical cooperation extended by Japan to the country.
Japan also extended the yen loans or outright grants to Peru, Paraguay,
Bolivia, Guyana, Haiti, Honduras, and Jamaica, providing various forms of
cooperation to Latin America in such areas as the infrastructure, health and
medicine, agriculture and fisheries.
Japan's trade with Latin America in 1981 totalled approximately $10.5
billion in exports, and $6.7 billion in imports, recording increases of 18%
and 17% respectively over the previous year.
 
5. Western Europe
 
  (1) Japan has been following a basic diplomatic policy to strengthen its
ties with West European countries with which it shares the basic values of
freedom, democracy and a market economy. In both Japan and Europe,
however, the necessity of promoting dialogues and cooperation between
them had not been fully recognized by many people. Thus, in the triangular
relations of Japan, the North America, and Europe, Japan-Europe relations
appeared to be the weakest. However, Japan-Europe cooperative ties have
become stronger following the hostage incident at the American Embassy in
Iran, the Afghanistan problem and the situation in Poland.
In June, Prime Minister Suzuki toured Eu