UK MOVES DATE FORWARD ON FINANCIAL RECIPROCITY
Britain will arm itself earlier than
hitherto planned with statutory powers to retaliate if decided
necessary against Japanese banking and insurance companies, on
grounds that similar U.K. Based financial institutions do not
enjoy the same market access in Japan, government sources said.
    The provisions being brought forward under the new
Financial Services Act are reciprocity clauses 183 to 186. The
powers will allow Britain to revoke or deny licences to
Japanese banking and insurance businesses, but will not affect
licensed dealers in securities, the sources said. The news
follows a cabinet meeting during which U.K./Japanese trade
problems were discussed.
    The government decided on the steps at its cabinet meeting
this morning and aims to maintain pressure to ensure that U.K.
Firms be allowed the same access to Japanese markets as
Japanese banking and insurance firms enjoy in London's
financial areas, government sources said.
    One source said "we want reciprocity in those fields. And
what we are saying is that, if not, then we can pull the plug
and stop you from having an unfair and uncompetitive advantage."
    The provisions being brought forward under the Financial
Services Act will take effect after Easter, or in around 21
days, the sources said.
 MORE
