HC Deb 03 November 1993 vol 231 cc340-2
10. Mr. Thomason

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the United Kingdom's relations with Japan.

The Minister of State, Foreign and Commonwealth Office (Mr. Alastair Goodlad)

Our relations with Japan are excellent. My right hon. Friend the Prime Minister visited Japan from 18 to 21 September, where he held wide-ranging talks with Prime Minister Hosokawa and other Ministers soon after they took office. He and the delegation of senior British business men who accompanied him, confirmed our positive approach to our trading relationship with Japan and stressed the continuing welcome for Japanese manufacturing investment in the United Kingdom.

Mr. Thomason

Does my right hon. Friend agree that continued inward investment from Japan is essential, particularly in areas such as the west midlands, and that it is enhanced by retaining and improving our existing diplomatic relations with Japan? Does he also agree that the Foreign Office has a vital role to play in enhancing and improving inward investment opportunities?

Mr. Goodlad

Yes. The British share of Japanese investment in the European Community during the financial year 1992–93 was more than 44 per cent. of the total. The Foreign and Commonwealth Office and the Department of Trade and Industry work very closely with the West Midlands development agency, both here and in Tokyo, to promote Japanese inward investment in the region. An inward investment mission from Japan, sponsored by the Invest in Britain Bureau, has visited the west midlands during the past fortnight. I hope that those investors will smile on Bromsgrove, in whose interests my hon. Friend is such a doughty fighter.

Mr. Cryer

Is not the inward investment from Japan only possible because of its enormous manufacturing success and the balance of payments surpluses that Japan enjoys with most other major manufacturing countries throughout the world? Will the Minister discuss with the Japanese how they achieve that, while we apparently cannot achieve it and are subordinated to the other countries of the Common Market so as to provide a large internal market for our manufacturing industry? Why should we be beholden to the Common Market when the example of Japan demonstrates that that is not necessary?

Mr. Goodlad

The House will be unsurprised to learn that the hon. Gentleman is wrong as usual. Exports from this country to Japan in the first part of this year were up by nearly 19 per cent. compared with last year's results, despite depressed levels of demand in Japan due to its current economic difficulties. The whole House, with the exception of the hon. Gentleman, will want to rejoice in that.

Mr. Viggers

Does my right hon. Friend agree that cultural and political links with Japan have never been stronger, and nor have our trade links? Does he agree that Japan has consistently placed more than 40 per cent. of its investment in the European union in the United Kingdom —and an even higher proportion in the United Kingdom financial sector? In his forthcoming visit to Japan, however, will my right hon. Friend urge on that country the fact that there are a number of invisible barriers to trade which, if removed or reduced, would enable us to improve our exports to the Japanese and thus help them to reduce their trade surplus?

Mr. Goodlad

Yes, indeed. As my hon. Friend knows —in his present capacity he makes a great contribution to our relations with Japan and is very knowledgeable about it—Japan has removed most barriers to trade in recent years, although there are still problems in some areas. The Prime Minister raised those matters during his recent visit and I shall do the same in my forthcoming one.

The Prime Minister of Japan described my right hon. Friend the Prime Minister's visit as the beginning of a new era for British-Japanese relations, which he saw as the linchpin of Japan's relations with Europe. We will continue to seek to enhance that relationship and not, as some others do, to undermine it.

Ms Ann Coffey (Stockport)

On a point of order, Madam Speaker.

Madam Speaker

Order. We take points of order after statements.