TRADE WITH JAPAN.

Auckland Star, Volume LX, Issue 163, 12 July 1929, Page 9

TRADE WITH JAPAN.

MARKET FOR NEW ZEALAND

POST-WAR DEVELOPMENTS

In a recent lecture on New Zealand's trade with Japan to the Wellington group of the Institute of Pacific Relations, Dr. Scliolelield pointed out that although our trade with China began 100 years ago, when the East India clippers came to New Zealand waters for spars for themselves and sealskins for the China market, at the time of the first Imperial conference in 1927 Japan was practically a terra incognita to New Zealand, for although we purchased about £30,000 worth of curios that year the goods, with the exception of silk, might be regarded as mere samples. Although there was a steady growth in our imports from Japan our exports to that country until recently never reached the dignity of a settled trade. Even in the five years from 1917 to 1921 we paid 5.1 million pounds for our imports from Japan, and we received o'nly £43,034 for our exports to Japan.

While, owing to the war, in the years following 1915 the New Zealand market was flooded with Japanese manufactures and even foodstuffs, when the British manufacturers came into the market again, the Japanese imports into New Zealand shrank in 1920-1921 from a million and a-lialf to two-thirds of a million, and they have never since risen above that level. It is generally believed that Japan made such poor use of her opportunities during the war that she created no goodwill for herself and simply withered out of the New Zealand markets as soon as Great Britain was able to return to competition. i According to Dr. Scholefield, New Zealand should be able to sell her raw material and foodstuffs to Japan to enable her to manufacture for China. Hie trade from Japan to New Zealand has fallen into a more normal channel, and there has been of recent years an equalising of imports and exports. _ Of our imports from Japan the principal are silk and cotton goods, Japanese oak (roiHi sawn), hosiery, haberdashery and other" apparel, and onions. Every year Japan buys more wool irom Aew Zealand. chieflv low-grade wool, crutchings, etc./ because wool is recognised by the Japanese to-day as better than cotton and cheaper than silk. Wool has since 1012 constituted the bulk of our exports to Japan, rising from £211,000 in 1922 to £586,000 in 1928. New Zealand butter has been reaching Japan for some years past, but not in large quantities owing to the more favourable position occupied by Canada with regard to the tariff and by Australia with' regard to shipping. Japan is also a steady buyer of.our casein, for which she paid in 1928 £45.237. Trade between Japan and New Zealand is now on a healthy basis. Each country is sending its normal products, and there is no large adverse balance on either side to be adjusted by cash payments. We send more of our products to Japan than to all the British possessions in Asia. itli regard to butter, the new trade arrangement with Japan will equalise the present inequalities, and may assist to develop New Zealand trade towards the point at which direct services wilL be justified.