DSR 11 (Revised)
DRAFT:
FROM:
C
minute/letter/teleletter/despatch/note
Secretary of State
DEPARTMENT:
SECURITY CLASSIFICATION
TO:
Top Secret
Secret
Confidential
Restricted
Unclassified
Henry Scott Stokes Esq Fortune
Time and Life Building
3-6 Ohtemachi 2-Chome
Chiyoda-ku
Tokyo 100
PRIVACY MARKING
Japan
SUBJECT:
TEL. NO:
TYPE: Draft/Final 1+
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A Bache Esq TOKYO
.In Confidence
CAVEAT....
Enclosures-flag(s)...........
Thank you very much for your letter of 4 January.
I was very interested to see the articles which you
enclosed drawing my attention to the increasing inter-
national 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.