asked the Secretary of State for Trade and Industry what action the Government intend to take over the next year to reduce the United Kingdom trade deficit with Japan; and what is his latest estimate of that deficit.

We continue to press the Japanese Government to take all necessary steps to bring about a reduction in their trade surpluses. Such steps will need to include further market opening, the implementation of structural reform and stimulation of domestic demand. From the provisional figures for the 12 months ended December 1986, United Kingdom trade with Japan showed a balance of trade deficit of £3·7 billion.