§ 58. Mr. Osborneasked the Chancellor of the Exchequer what action he proposes to take as a result of Japanese foreign exchange regulations, which came into force this week, restricting exports to the sterling area because of the £85,000,000 accumulated sterling balances.
§ Mr. R. A. ButlerA joint review of the payments relationship between Japan and the sterling area is to be held early next month; consideration will no doubt then be given to the various problems arising out of Japan's sterling accumulation.
§ 68. Mr. Teelingasked the Chancellor of the Exchequer what steps he is now taking to realise the sterling pre-war debts of Japan, in view of the recent breakdown in trade negotiations over steel because of Japan's claim that she holds too much sterling; and how much of these debts are convertible into dollars.
§ Mr. R. A. ButlerAs my right hon. Friend the Minister of State for Economic Affairs explained in reply to a Question by the hon. Member for the Cities of London and Westminster (Sir H. Webbe) on 11th February, the settlement of Japan's sterling pre-war debts is primarily a matter for negotiation between Japan and her creditors. I am, therefore, not in a position to answer my hon. Friend's questions about these debts.