Bank of Japan

HC Deb 28 June 1966 vol 730 cc1577-8

38. Mr. Emrys Hughes

asked the Chancellor of the Exchequer to what extent the Bank of Japan has assisted in measures to support the £.

Mr. Callaghan

I am glad that the Bank of Japan again took part in the arrangements announced recently. The details are not published.

Mr. Hughes

How does the Chancellor explain the fact that Japan, which was almost wiped out during the war, is in a position to lend us money when we are dithering on the brink of bankruptcy? Is it because Japan is not committed to spending so much on armaments?

Mr. Callaghan

That is an apposite question. While I would not underrate the heavy burden of peace-keeping for the rest of the world that this country undertakes, basically Japan's success can be attributed to a great rise in productivity and a substantial rise in exports. If we had had similar increases over the last 20 years, I think that we would be in a similar position.

Mr. Gower

Is it not a fact that the Japanese have used with great success the machinery of a free-enterprise economy?

Mr. Callaghan

Yes, Sir, and so have we. The results vary according to the degree of application and the degree of managerial skill and enterprise, the degree of restrictive practices, and the general desire to ensure that productivity increases at a rapid rate.