2007 was an important year for the Society. The most significant development was the merger that took place between the Society and Japan 21, the leading charity in the field of educational programmes designed to improve knowledge of Japan in schools and to develop links between British and Japanese teachers and children. Since October these programmes have become a core part of the Society's activities. This merger has transformed the Society. Although the Society continues to be active in London with a wide range of events, its reach has now been extended throughout the United Kingdom both though the work with schools and teachers and through the Small Grants scheme which helps to stimulate grassroots activity relating to Japan.

The traditional activities of the Society have flourished during the year. There has been a full programme of events in different fields designed to appeal to members whatever their interests: business, history, society, the arts, contemporary lifestyle. More details about the activities of the Society may be found in the council members' report on page 3.

In 2007 the Society showed a surplus of £4,989. Total expenditure, however, will in 2008 be approximately twice the level before the merger. There will be a significant challenge to raise further funds in order to maintain and develop the important schools educational programme.

At the beginning of the year we decided to place even greater emphasis on attracting younger people to become members and to come to our events. We invited a number of companies and individuals to give higher level financial support which would allow us to put on a programme that would be attractive to new and younger members. Japan 21 also had a group of most generous supporters who have committed significant donations over the coming years. Such donations will be applied by the Society specifically to the schools educational programme and the Small Grants scheme. The combination of these two support groups is an excellent base for further fundraising as we develop our activities in the future. We are most grateful to all our donors and all our members for their financial support, without which the important activities of the Society would not take place.

Before the merger took place Robert Guy, having reached the age of 60 and having run the Society for 10 years, indicated to me his wish to retire. The Society has developed strongly over the last 10 years and we are most grateful for all that he has done. Robert retired on 30 September; we are delighted that he is continuing to work for the Society as a consultant, working on development and events. Heidi Potter, who was running Japan 21, was appointed as the new director of the combined organization on 1 October.

We are confident that with the broadening of activities in the educational and grassroots fields around the country, the Society is embarking on an important new stage in its history. We believe that this will be attractive to members, to donors, to volunteers and to schools and other partner organizations. The Society will be even better placed to fulfil its objective to be the leading body in the United Kingdom dedicated to the enhancement and celebration of UK-Japan academic, commercial and cultural affairs.

Since the last annual general meeting there have been a number of changes in the membership of the council. I would like to thank Kenji Hiramatsu for his keen support of the Society as vice-chairman; we welcomed Wataru Nishigahiro in his place. Christopher Hood gave important input into the council's deliberations. I would like to pay particular tribute to Clive Bradley, who supervised the Society's finances most ably and diligently for seven years. His place as treasurer has been taken by George Olcott. We also welcomed to the council Richard Large who was the chairman of Japan 21.

At the annual general meeting in June a number of our council members will be retiring. Martin Barrow has been tireless in his work in organizing activities and chairing our development activities and we will miss his input on the council. I am sad to report that Ken Abe and Toshikazu Takei are returning to live in Japan and are therefore resigning from the council after only one year; but I thank them for their great support over this period. David Warren is shortly to take up his position as ambassador in Tokyo and we look forward to continuing to work with him. Timon Screech has reached the end of his term and leaves for a sabbatical in Japan; he has played an important role in organizing the lecture programme. Finally, I should like to register particular thanks to Richard Large, who has contributed so much as Chairman of Japan 21 and since the merger as its education programmes have become integrated into the Japan Society's programme.

At our annual general meeting two members will be retiring by rotation, Paul Dimond and Andrew Fraser. They have indicated their willingness to stand for re-election. Both Paul and Andrew play important roles in the Society and the council warmly proposes their re-election.

There are three further candidates who are standing for election to the council at the annual general meeting. Pauline Chakmakjian has been involved in helping to develop new programmes for the Society; Anna Dingley has many years experience working with Japanese business; and Tsunao Kijima is a leader in the Japanese business community in London. Further details of the candidates, the voting procedure and the arrangements for the meeting are being circulated to members.

I would also like to express my thanks to our President Ambassador Nogami, who will be returning to Japan before the annual general meeting. He has given great support to the Society during his time at the embassy here.

The annual general meeting will be held this year at 6.00pm on Wednesday 4 June 2008 at the Japanese Embassy, 101-104 Piccadilly. The meeting will be a good opportunity to hear more about our future plans. We are delighted to be able to welcome Ambassador Ebihara to the AGM; he will just have arrived in London and this will be a good opportunity for members of the Society to meet him at the reception following the meeting. There is much excitement already over the Japan - UK 150 celebrations planned to commemorate the establishment of formal diplomatic relations between our two countries, on which the Society and the Embassy are working in close cooperation. I look forward to seeing many members there.