§ 28. Mr. William Teelingasked the Chancellor of the Exchequer what recent consideration has been given by him to the evolution of schemes whereby Japan will be enabled, in the reasonably near future, to meet her obligations on her loans.
§ The Minister of State for Economic Affairs (Mr. Gaitskell)The Japanese Government are fully aware of Japan's obligations under her loans, but I fear that, so long as she can only secure her essential imports with the help of large-scale assistance from the United States taxpayer, it is difficult to devise any scheme under which she could resume their service.
§ Mr. TeelingIs the right hon. Gentleman aware that the Japanese Government have already stated that they are putting yen aside for the purpose of paying these loans; and if that is so, and as many British firms have got to find yen for their purposes in Japan, can he not evolve some scheme by which they can use the yen in Japan and pay the British holders sterling in England?
§ Mr. GaitskellIt is a question of foreign exchange for Japan, and I am afraid that all the sterling that Japan has available is used for the purchase of essential imports.
§ Mr. TeelingDoes not the right hon. Gentleman realise that what I am saying 1710 is that British companies are at the moment using yen in Japan. Therefore, can he not arrange for the yen which are being put aside by the Japanese Government to be used by our people for the purposes for which they require the yen?
§ Mr. GaitskellSo long as Japan has an adverse balance of payments and is heavily subsidised by the United States of America, it is out of the question to consider resuming the pre-war debt services.