HC Deb 24 April 1950 vol 474 c604
54. Mr. Walter Fletcher

asked the Secretary of State for Foreign Affairs in view of the fact that no peace treaty has been signed with Japan, what action he now proposes to take to prevent penal taxation being imposed on British firms trading in Japan who have assisted in its rehabilitation and are now threatened with a scale of taxation that may end in their having to close down altogether.

Mr. Ernest Davies

The hon. Member will be aware from Press reports that the Japanese Minister of Finance has informed foreign businessmen that a number of income-tax exemptions are to be made in their favour. The head of the United Kingdom Liaison Mission in Tokyo has already discussed this matter with the Supreme Commander for the Allied Powers, one of whose duties is the protection of the interests of Allied nationals in Japan, and has been authorised to make further representations should this appear to be necessary.

Mr. Fletcher

In view of the fact that' a 55 per cent. tax on foreign firms, including British, has been announced, will the hon. Gentleman make quite certain that there is no danger of being faced with a fait accompli? Will he see that the imposition of such a tax is stopped, because no peace treaty has yet been signed and there is no Japanese Government which has a right to do this?

Mr. Davies

Yes, Sir, but this question of taxation policy is a matter that must be left to the Japanese Government.

Mr. Prescott

As this affects so many foreigners, and is a matter of high policy, should not some directive be issued by the Far Eastern Commission?