HC Deb 07 March 1978 vol 945 cc563-4W
Mr. Hoyle

asked the Secretary of State for Trade if he has received any clarification from the Japanese of their intentions concerning export to the United Kingdom of motor vehicles.

Mr. Dell

Yes. A letter has been handed to our embassy in Tokyo by the Japanese Ministry of International Trade and Industry (MITI).

In this letter MITI has explained that it will give "strong administrative guidances" to the Japanese vehicle industry. The effect will be to limit shipments of cars to the United Kingdom in 1978. MITI says that, accordingly, it confidently expects that the Japanese share of the forecast market in 1978 will decline from the actual share taken in 1977. The letter also contains new assurances on shipments of commercial vehicles. In addition, MITI has undertaken to ensure that there will be a regular exchange of views between our industry and the Japanese industry

I very much hope that British manufacturers, particularly British Leyland, will be able to take advantage of the greater degree of certainty which I believe these assurances give them.

Following is the text of the letter: MITI is greatly concerned with the question of Japan's motor car exports to the UK. It is our understanding that Japanese Automobile Manufacturers will continue to maintain their co-operative attitudes toward the British side and keep their exports in a moderate manner. MITI, fully recognising the special circumstances of the British industry and sincerely hoping for the early and successful revitalisation of the British industry, will conduct the strong administrative guidances this year to the following effect so as not to interrupt the very process of reconstruction of the UK automobile industry.

  1. i. The number of passenger cars to be shipped from Japan to the UK in 1978 will not exceed the level of 1977.
  2. ii. The number of light commercial vehicles (up to 3.5 tons) to be shipped from Japan to the UK in 1978 will not exceed the level of 1977.
  3. iii. Heavy commercial vehicles (over 3'5 tons) will not be shipped directly from Japan to the UK.
Accordingly it is the confident expectation of MITI that the Japanese share of the UK market for passenger cars will naturally decline from the share taken in 1977, assuming the market grows in accordance with the forecast given by the SMMT to JAMA. MITI will take steps to ensure that the Japanese side will be fully prepared to exchange views regularly with the British side on the development of the UK market and of Japanese shipment of motor cars to the UK.

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