HC Deb 05 April 1950 vol 473 cc1175-6
22. Mr. Paton

asked the Secretary of State for Foreign Affairs to what extent the United Kingdom representative on the Far Eastern Commission was consulted before approval was given by General MacArthur to the introduction by the Japanese Government of the Special Tax Bill, which levies a 55 per cent. tax on the earned incomes of foreigners resident in Japan.

Mr. Younger

General MacArthur has consulted neither His Majesty's Government nor the Far Eastern Commission about the Japanese Government's new Tax Bill, nor was it incumbent upon him to do so. The functions of the Far Eastern Commission, as laid down in the terms of reference, are to formulate broad policies and not to intervene in the day to day administration of Japan. The full text of the new Bill has not yet been received, and I should prefer to make no statement until I have seen it.

Mr. Paton

Is it not extraordinary that the Supreme Commander in Japan should take to himself the authority to sanction a Bill which will probably make it completely impossible for foreign companies to continue to operate in that territory?

Mr. Younger

As I have said, I would prefer not to make a statement before I have seen the Bill. It is not even clear at the moment that the Bill necessarily requires the sanction of the Supreme Commander.

Mr. Walter Fletcher

Is it not a matter of broad policy, as mentioned by the Minister of State, that a decision should go forward—which should have had the attention of the Commission—which must have the effect, in the end, of thrusting out of Japan nearly every foreign firm?

Mr. Teeling

It is not true that these recommendations were in the Shute Report and have been published for a long time, and that the actual tax of 55 per cent. is nothing more than what the Japanese and the Americans are being asked to pay? Is it not equally true that "The Times" report and the "Manchester Guardian" report of Saturday are looked upon by authorities as being inaccurate and, possibly, wilfully inaccurate?

Mr. Younger

I think that supplementary question illustrates the wisdom of waiting until we actually see what the proposal is in detail.