U.K. MERCHANT BANKS TO JOIN TOKYO EXCHANGE IN 1988
Chancellor of the Exchequer Nigel Lawson
said satisfactory progress has been made in talks with Japan
that would lead to membership of the Tokyo Stock Exchange for
three British merchant banks next year.
    Following weekend talks here between Japanese and British
officials Lawson told reporters "we have achieved our objective."
    The three applicants, <Baring Brothers and Co Ltd>,
<J.Henry Wagg and Co Ltd> and Kleinwort Benson Lonsdale Plc
<KSLL.L>, would join "when the Stock Exchange has been extended,"
he said.
    The TSE has said this will be completed in May 1988. It has
repeatedly said it cannot accommodate any new members until
then because of limited space on its trading floor.
    During a visit to Tokyo in April, U.K. Corporate Affairs
Minister Michael Howard presented Japanese officials with what
he called a non-negotiable timetable for granting the three
British securities companies TSE membership.
    Howard said Britain expected a favourable response at last
weekend's meeting and wanted the firms to be made members
before next May. If Tokyo failed to act, Britain was ready to
retaliate against Japanese financial groups in London, he
added.
    Last month the Tokyo Stock Exchange announced plans to set
up a special committee to study the membership question.
    The committee is due to produce a report by the autumn.
This would allow the TSE to announce formally by the end of the
year who will be granted membership, although the companies
chosen would not be able to start trading until May.
 REUTER
