TRADE AGREEMENT.

Auckland Star, Volume LXV, Issue 4, 5 January 1934, Page 7

TRADE AGREEMENT.

Japanese Accept Indian

Terms.

LANCASHIRE SATISFACTION.

(Received 9.30 a.m.) LONDON, January 4. A message from Calcutta states that the prolonged trade negotiations between India and Japan at New Delhi have ended with the acceptance by the Japanese of the Indian terms. It is expected that an agreement will be concluded to-morrow, under which India will grant Japan niost-favoured-nation treatment, imposing no discriminatory tariff. Under tho cotton clauses Japan will' export annually to India: (1) 125,000,000 yards of cotton piece goods without obligation to buy Indian cotton; (2) 325,000,000 yards in exchange for the purchase of 1,000,000 bales of cotton; or (3) a maximum of 400,000,000 yards for 1,500,000 bales. Japanese imports are to be regulated according to the piece goods categories. Japan also will recognise India's right to safeguard and protect her industries, though she will bo free to make representations if it is considered that India's policy works harshly against her. The trade balance under the agreement will depend probably on the IndoJapaneso trade in sundry goods, the volume of which at present is indeterminable owing to the new tariff changes. A message from Tokyo states that Japanese officials consider that the agreement with regard to cotton should prove mutually satisfactory. Tho council of tho Federation of Cotton Spinners at Osaka to-day agreed to call off tho boycott on Indian raw cotton on the date of the promulgation of tho tariff change. The news of tho agreement has been received with satisfaction in Lancashire, though in some quarters the feeling is expressed that the Japanese quota has been fixed at too high a level. The way now is open for London discussion between the Japanese trade delegation and tho loaders of tho Lancashire cotton industry.