§ 58. Mr. W. Fletcherasked the Chancellor of the Exchequer if he is now able to say what has been the effect of the system under which Japanese goods are being artificially subsidised by means of exchange rates; and what steps he is taking in the matter.
§ Mr. JayThe system of multiple rates which has until recently been in force for the conversion of the foreign exchange receipts of Japanese exports into yen has been accompanied by a policy of fixing the prices charged for Japanese exports in relation to world prices. It has, 67W however, enabled some Japanese industries to maintain production beyond the point which will be profitable now that a single rate of exchange for the yen has been announced unless their costs are reduced. His Majesty's Government have for long regarded a single rate for the yen as being desirable.