Dáil Éireann díospóireacht -
Wednesday, 7 Feb 1990

Vol. 395 No. 4

Written Answers. - Soviet Union and Japan Commercial Ventures.

Proinsias De Rossa

Ceist:

95 Proinsias De Rossa asked the Minister for Foreign Affairs if he will outline the progress made to date in developing the commercial ventures discussed by the Taoiseach during his visits to the Soviet Union and Japan last year, and if he will make a statement on the matter.

Minister for Foreign Affairs (Mr. Collins)

Following the Taoiseach's meeting with President Gorbachev and the follow-up meetings in Moscow later in April of last year, considerable activity has been under way to increase economic co-operation with the Soviet Union. Interdepartmental committees have been set up to co-ordinate our approach in this area, and there have been visits to Moscow at official and technical level, as well as follow-up visits by Soviet delegations to Ireland.

The Government have now identified those areas where co-operation can most usefully be developed and are currently working to conclude a package of measures which will put Irish-Soviet economic relations on a new footing. We have already reached agreement on a declaration on principles of economic co-operation, and we hope to reach agreement as soon as possible on:

—a science and technology agreement

—an investment protection agreement

—a road transport agreement

—a marine research agreement

Total trade between the two countries has grown by 72 per cent from IR£46.8 million to IR£80.6 million since the Shannon meeting, resulting in the opening of new opportunities for Irish exports, particularly in the dairy and beef sectors, while at the same time we have substantially increased our imports from the USSR, including purchases of an amount of Soviet crude oil by the Irish National Petroleum Corporation (INPC). There has been considerable activity in the semi-State and private sector in seeking out areas where joint ventures and other new forms of economic co-operation with the Soviet Union might be undertaken.

With regard to Japan, considerable progress was made in the area of bilateral economic relations during the Taoiseach's visit there in April of last year. In addition to meetings with the Japanese Government, the Taoiseach had meetings with the Keidanren, the leading business and industrial organisation of Japan, and selected industrialists.

In the official talks, agreement was reached on the following matters of economic significance:

—the holding of economic consultations on a regular basis between Ireland and Japan,

—the need for ongoing contact between the Department of Industry and Commerce and the Japanese Ministry for International Trade and Industry (MITI),

—the desirability of an investment mission to Ireland sponsored by the Japanese Ministry of International Trade and Industry.

The first session of the economic consultations took place in Tokyo on 10 October 1989. Issues discussed included those related to tourism, the FÁS programme for training Irish graduates in Japan, and science and technology matters. The next session is provisionally scheduled to take place in Dublin in July 1990.

With regard to consultations between the Department of Industry and Commerce and Japanese Ministry for Trade and Industry, the main subject under discussion is the question of Japanese investment in Ireland, including the participation of Japanese companies in the Financial Services Centre. Within the framework of these consultations, it has been confirmed that the investment mission led by MITI, to which I referred earlier, will visit Ireland from 31 March to 4 April 1990. While the final list of participants in this mission has yet to be determined, it will include some of the most prestigious names in Japanese business and its composition reflects the Industrial Development Authority's priorities in respect of potential industrial investors from Japan.

In parallel with these discussions, economic relations with Japan have developed further in 1989, both in terms of trade and industrial development. In the area of industrial investment, in 1989 six Japanese owned companies announced their intention to locate in Ireland, including enterprises as diverse as Fujitsu Isotec who manufacture printing equipment and Sumitomo Bank who will locate in the International Financial Services Centre.