Japan (Hansard, 10 March 1993)

§ 5. Mr. Viggers
To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to visit Japan to discuss the role of his posts in furthering trade.

§ Mr. Hurd
I plan to visit Japan in early April. During the visit I shall talk to our ambassador about the considerable effort that our posts in Tokyo and Osaka are giving to export promotion, trade policy and other commercial work, including the encouragement of Japanese investment in this country. I shall also discuss our trading relationship with Japanese and British business men.

§ Mr. Viggers
May I say how warmly the visit of the Foreign Secretary and, later this year, that of the Prime Minister, will be welcomed in Japan, as they back up the efforts of our excellent ambassador and his staff in Tokyo? Does my right hon. Friend agree that relations between the United Kingdom and Japan are excellent, as exemplified by the fact that more than 40 per cent. of all Japanese investment in Europe is in the United Kingdom? Does he also agree that that investment is being made here because we are in the centre of Europe?

§ Mr. Hurd
Yes, our relationship is good. It needs to be maintained at all times by visits at all levels, including, and perhaps most important, business visits. My hon. Friend is right—there are now 184 Japanese-owned manufacturing companies in the United Kingdom which have created, or will create, more than 50,000 direct jobs. Those companies come here because they know that we are fully committed members of the European Community and fully committed partners in the single market, not half-in, half-out.

§ Mr. Enright
Will the Foreign Secretary confirm that since our withdrawal from the exchange rate mechanism the rate at which the Japanese have invested in this country has slowed down considerably?

§ Mr. Hurd
I think that overseas Japanese investment as a whole has slowed down. I do not have the latest figures, but I am sure that anything that creates uncertainty about our future position in Europe is likely to discourage investors from outside, whether from Japan, the United States or anywhere else.