§ Mr. Gouldasked the Chancellor of the Exchequer to what extent the EEC policy of asking the Japanese to restrict imports into the United Kingdom is attributable to the under-valuation of the yen in relation to sterling.
§ Mr. Robert SheldonExports from Japan to the United Kingdom and to other markets would be assisted whenever Japanese relative competitiveness is not fully reflected in the value of the yen on the foreign exchange markets. The responsibilities of surplus countries in respect of appropriate exchange rate policies were recognised at the recent IMF meeting in Manila. Policies for general balance of payments adjustment may, however, need to be complemented by specific measures in cases where the revival of particular industries is threatened by an excessive increase in the level of imports, and the United Kingdom has accordingly sought assurances from Japan850W about the likely level of imports in those areas. Such understandings now cover a wide range of imports from Japan.