56
From the Secretary of State
Agreed in draft
Ого нема
Нети
Foreign and Commonwealth Office
My
23%
London SWIA JAH
20 January 1994 Cogoli
RECEIVED IN REGISTRY
JAM1784
NOEX
P
Take.
NR Thank you very much for your letter of January.
I was very interested to see the articles which you enclosed drawing my attention to the increasing international activity of Japanese banks and to Tokyo's gradual emergence as an international financial centre.
On the whole I think we would welcome the trends described in the articles. Japanese financial institutions have an important role to play in the international banking world, both in their own right and in partnership with other Western institutions. The development of Tokyo as a major financial centre should provide a useful impetus to the liberalisation of Japanese money markets, leading to greater internationalisation of the yen. This would be more in keeping with Japan's central position in the world economic system.
We do not think that Tokyo would rise to prominence at Hong Kong's expense. On the contrary, we certainly do not expect Hong Kong to 'fade away'. We anticipate that the rate of expansion in the Far East should generate sufficient activity to support the existence of two major financial centres in the region.
GEOFFREY HOWE
Henry Scott Stokes Esq
With my good work
Justs
1. CC. Mr Peretz, EFT, HMT
Mr. Gartley, ES LD Mr. Uden, FBD M. warren, ECD(B)
Mr. Williams, HKD
See
•2.R&PA SMC
23.)