Abe: Leaving EU could hurt Japanese investment in U.K.

Prime Minister Shinzo Abe, left, and Britain's Prime Minister David Cameron shake hands after addressing the media during a news conference at in London on May 5. (AP Photo/ Pool)

Japanese Prime Minister Shinzo Abe says Britain will be a less attractive destination for Japanese investment if it leaves the European Union.

Abe became the latest world leader to weigh in on Britain's EU debate during a visit to London on Thursday.

He told reporters at a news conference with Prime Minister David Cameron that "Japan's interests are also at stake" in Britain's June 23 referendum on EU membership.

He said that "Japan very clearly would prefer Britain to remain within the EU" and noted that 1,000 Japanese businesses in Britain employ some 140,000 people.

Abe said many were based in Britain "precisely because the U.K. is a gateway to the EU. A vote to leave would make the U.K. less attractive as a destination for Japanese investment."

His intervention comes less than two weeks since U.S. President Barack Obama bluntly warned Britain that it would be "in the back of the queue" for a trade deal with the United States if it dropped out of the EU.

Speaking through a translator at a news conference with Prime Minister David Cameron, Abe said about 1,000 Japanese companies operate in the U.K. employing 140,000 people.

But supporters of a British exit from the 28-nation bloc poured cold water on Abe's comments saying Japanese companies such as Toyota, Nissan and Hitachi were committed to investing in the United Kingdom regardless of the outcome.

"Japan wouldn't accept the huge loss of control Britain has suffered because of our EU membership, so much of the public will be skeptical of the Japanese prime minister's 'do as I say, not as we do attitude,'" said Matthew Elliott, Chief Executive of the Vote Leave campaign.

Cameron said Britain benefited more from Japanese investment than from any other country apart from the United States. He said Japan had investments worth a total of 38 billion pounds ($55 billion) in Britain.

"Japanese firms see Britain as the gateway to Europe," said Cameron, who called the referendum and is leading the campaign to keep Britain in the club it joined in 1973.

A British exit would unleash volatility in foreign currency, stock and bond markets, undermine post-World War Two European efforts toward integration and raise questions about the 21st Century fate of Britain's $2.9 trillion economy.

"Britain's friends around the world, including Japan, will be watching your decision on June 23 with very close attention," Abe said.

Abe is the latest world leader to lend support to Cameron's call for Britons to vote to stay in the EU.

Last October, Chinese President Xi Jinping said he wanted to see a united European Union and that he hoped Britain would play a leading role in deepening China-EU ties.

Abe Calls On Putin To Visit Japan

Abe said on Thursday he would like Russian President Vladimir Putin to visit Japan to discuss the disputed Kurile Islands and the signing of a formal World War II peace treaty.

"We would like to search for the most appropriate time for Putin to visit Japan," Abe, who is due to meet Putin on Friday, told reporters during a visit to London.

"The Northern Territories (Kurile) issue can't be resolved without direct talks between leaders," he added. "We have had more than 70 years of the post war era and still a peace treaty has not been concluded. This is anomalous."

He said a treaty was needed to realize the full potential of Japan's relationship with Russia.

The dispute over the islands has strained relations since World War II, when Soviet forces occupied four islands at the southern end of the chain. The Kremlin said on Wednesday that this week's talks were unlikely to result in serious progress.

(THE ASAHI SHIMBUN)