Moreover, I understand that the University of Glasgow is undertaking a considerable amount of research funded by Japanese companies in the pharmaceutical and other sectors. In fact, the British operations are coming to play an increasingly diverse and independent role in the global activities of such companies. It is a fact, of course, that many people are concerned about what lies ahead. One factor in all this is the strength of sterling. This has hit the manufacturing sector, including Japanese companies, to some extent, though the situation could change again in the future.
Exchange rates are one of the main factors considered by companies contemplating inward investment.
On the other hand, there are other areas in which the UK compares favourably with its Continental rivals. Let me mention two projects in Scotland which demonstrate that Japanese investment has by no means run its course. Last month Japanese electronic equipment manufacturer Yaskawa Electric opened its newly expanded European manufacturing and distribution centre in Cumbernauld. Moreover, just a couple of weeks ago ' AGM Batteries', a joint venture to manufacture lithium batteries in Thurso, was announced by AEA Technology and its two Japanese partners, Mitsubishi Materials and Nippon Storage Battery. And if we extend our focus to the whole of the UK, Honda's decision to invest Y450 million in expanding its Swindon plant, announced last week, immediately comes to mind.