Ambassador Orita, Governor Toshihiko Fukui and Governor Mervyn Allister King

On June 29, the centenary of the Bank of Japan (BOJ)'s London Office was celebrated at a reception hosted by its Governor, Toshihiko Fukui. The reception was attended by Ambassador Orita and distinguished guests from Japan and the UK's financial world. The celebration was also attended by Mervyn Allister King, Governor of the Bank of England.

The Japanese government issued bonds to finance the expenditure for the Russo-Japanese War in 1904 and 1905. As they were subscribed to by many investors in London, the BOJ opened its representative office in 1904 to supervise the bonds' issuance and repayment operations in London. The Japanese government issued sterling-pound bonds four times in the London market. Funds raised through the four issues altogether amounted to double the size of the Japanese government budget in an ordinary year.

Over the years the BOJ has enjoyed close co-operation and the constant exchange of views with its counterpart, the Bank of England. The Bank of Japan has not been a mere beneficiary. It has also contributed to nurturing the London market and maintaining its stability.

The BOJ was instrumental in the development of London's money market at the beginning of the twentieth century. It utilised a large pool of funds from the Japanese government bond issuance for the purpose of the better functioning of the money market in London. The total amount of proceeds of Japanese bond issuance was more than double the amount of gold reserves of the Bank of England.

Another example is the offer of a loan to the Bank of England during the period from 1964 to 1977 when the UK faced a currency crisis.

The scheme was undertaken under the auspice of broader international initiatives, and the two central banks, in particular, were in very close co-operation.

Governor Fukui delivers a speech

Nowadays the BOJ's London Office assumes three roles: It carries out surveys on the UK economic and financial situation, UK financial policy and the position of the financial capital market in Europe. It also communicates and co-ordinates with local branches of Japanese banks and security corporations and financial policy-making authorities of the British government. In addition, the office disseminates information on Japan's financial policies, the Japanese economy and the position of Japan's financial system.

A special collection of artefacts commemorating the friendly Anglo-Japanese financial relations was displayed at the reception. These included a 22ct gold ceremonial sake bowl presented to the Bank of England by the Japanese government, one of the original Imperial Japanese government bonds issued in 1904 and the Bank of England Distinguished Visitors Book, which was signed by some important Japanese political figures in the Meiji era, e.g. Hirofumi Ito (first Prime Minister) and Kaoru Inoue (first Foreign Minister).

Original Imperial Japanese government bond		Banknote signed by important Japanese political figures
The Japanese Government issued bonds to finance the expenditure for the Russo-Japanese War in 1904 and 1905.		On 22 nd January 1864 five men who were later to become leaders in the first Meiji government, they were also known as ��פhoshu's five great men�ߡ� signed a Bank of England note.
22ct gold ceremonial sake bowl		Treasure junk
Presented in November 1911 to the Bank of England by the Imperial Japanese Government in appreciation of the contribution by the Bank to the Famine Relief Fund of the Northern Provinces of Japan, 1905.		This treasure junk was presented to the Bank of England by the BOJ and carries seven heavenly figures who are either patron saints of merchants, farmers and musicians, or represent virtues such as ethics, happiness, and longevity. The mast shows a Japanese ideograph symbolising wealth, perhaps making the junk an appropriate gift between two banks of issue. (Ivory; Edo Period 18th Century)

Related website: Bank of Japan

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