HC Deb 09 November 1972 vol 845 cc1192-3
Q6. Mr. Norman Lamont

asked the Prime Minister if he will make a statement on his recent official meeting with Mr. Tanaka, the Prime Minister of Japan.

The Prime Minister

As I told the House during the last Session, I visited Japan from 16th to 19th September at the invitation of the Japanese Government. I had frank and cordial talks with the Prime Minister and the Minister for Foreign Affairs on a wide range of subjects of common interest. I have placed in the Library of the House a copy of the communiqué issued after my visit. I am convinced that the relationship between Japan and other industrialised nations is of fundamental importance for world prosperity and stability. Mr. Tanaka has accepted my invitation to visit the United Kingdom next year.

Mr. Lamont

Can my right hon. Friend say whether the question of the under-valuation of the Japanese currency was discussed? Is he aware that this threatens a major international monetary crisis in the next six months? Will the Government, in conjunction with their European partners, put the strongest pressure upon the Japanese Government both to liberalise their trade and either to revalue or to float the yen?

The Prime Minister

A great deal of our discussions were taken up with relationships in international trade and the currency arrangements of Japan, the United States and the European Community. I am not sure that it always achieves the best results to say that one is putting the utmost pressure upon a country to follow a particular course. This is a matter for the Government of the country to decide. Certainly I found that the Japanese Prime Minister recognised the importance of liberalising both existing Japanese trade arrangements and arrangements for the importation of capital into that country. It is only by freeing capital arrangements that many people will be able to trade to a greater degree inside Japan.

Mr. Tapsell

Is it not a fact that, although it would be helpful if the Japanese yen were revalued, the yen will always be a strong currency against sterling until we put our affairs in order here?

The Prime Minister

The real point about the international currency situation is that the yen is a strong currency against all other currencies.