(3) Statement of the Governor of the Bank of Japan Yuhki
With the object of bringing closer the economic relation between Japan and Thailand, the Bank of Japan has decided to extend a loan of ¥200,000,000 to the Thai Finance Ministry, and an agreement in this connection was signed today.
The financial economy and international lending and borrowing condition of Thailand have hitherto been very stable, and this state of affairs has undergone no fundamental change at all after the outbreak of the War of Greater East Asia.
However, now that the country has declared war on America and Britain, it has become necessary to readjust its financial economy on a wartime footing. The loan agreement just concluded is aimed to meet this necessity, and at the same time, to utilize the amount as a reserve currency of that country in case of need.
Simultaneously with the conclusion of this agreement, another pact has been signed whereby all settlements between the two countries will hereafter be made through the account of the Bank of Japan.
By virtue of this pact, a collective settlement system centering around the Bank of Japan has been soundly established, thus adding more importance
to the Japanese yen as a currency with which to make all settlements in the common prosperity sphere. Needless to say, the responsibility resting on the shoulders of the Bank of Japan as a pivotal organ of finance in the whole of greater East Asia zone has been increased by many fold.
In Thailand, a plan is now under way to establish a central bank. When the project materializes, the Bank of Japan will spare no efforts in extending a hearty support to the healthy development of this financial organ, hoping to contribute in this way toward a still more closer economic relation between Japan and Thailand through the central bank.
I am firmly convinced that the competent officials of Thailand in the financial field, by studying the wartime finance policy of Japan during their current visit to this country, have served greatly toward bringing about a favorable effect in the future economic relation between the two countries.