JAPAN'S TRADE.

Auckland Star, Volume LXX, Issue 90, 18 April 1939, Page 4

JAPAN'S TRADE.

HEAVY FALL IN 1938. I _

EFFECT OF LOST MARKETS

SHARP SETBACK IN INDIA. The '■.Tiipjiii Trade Monthly ,, for March. IIMO, indicates that Japan's exports of cotton piece goods fell Mlb-t-tantiiilly in I!WS ua compared with 1937, i lie decline in exports for ihc year being r> 1J.000,000 pqiinrc yards as compared with the previous your.

However, dfr-pili! tbi-, Jμ p;i n~ exports "f O'iLt.OII pier.- <;Oods ill 103S Still amounted to 2,110,000.000 square yards, Myniii.-t I ..IS",00(1.000 sqiinri! yard's for f.iriiL Hritain. \vli>i*c export-: fell off by

.". in.him),inn) Mjiiniv yards. The ratio of lotton piece gi.od* export* in 1038 was Mid foe Japan mid 0"> for Groat Britain.

The fall in Japan's exports is alttiuuted mainly to the rapid development of the spinning industry of British India, the business depression in the Hiked States and elsewhere, the antiJapaneae feeling running high in Africa iind other countries, and heavy pressure c.verled on cotton cloth by rayon. The intensification of control over imports of cotton might also have adversely affected tlie trade to a marked extent.

Exports of cotton piece goods to the United States from Japan in 1938 decreased by no less, than 87 per cent, it is stated, while her exports to the Xetherland East Indies fell by f>2 per cent and to British India by 10.4 per cent. The journal states that the hostile feelings against Japan primarily account for the drastic decrease. To some extent the serious loss of export trade to these iind other countries has been made up by ihc increase' in exports to China and Manchukuo. Rayon Exports.

The production of rayon yarn during 1938 showed a sharp drop of 40 per cent from the 1937 output. Exports of rayon yarn and textiles also registered a sharp decline, amounting to 01 per cent in quantity and 00 per cent in value, from the previous year. Production had been steadily increasing until 1937. A sudden change, however, came over the industry with the outbreak of hostilities in China, which caused a heavy restriction of rayon pulp imports and consequent production curtailment of a high percentage. The rayon industry, like other peacetime industries, has been sacrificed for promotion of the heavy industries, and this tendency, it is felt, will dominate ./apan for eome years to come.

The exports of staple fibre yarn increased 30 per cent.

Exports for 1938 of raw silk amounted to 1430 bales over exports in 1937. In Japanese silk circles it was feared that the continuance of the trouble in China would discourage American consumption of silk, but, despite this, total exports registered an appreciable gain. Exports to British India dropped drastically aa a result of a boycott of Japanese goods by British traders in India. Exports to Australia declined alsp, but not seriously.

In an effort to increase their exports of woollen goods, strict control has been exercised in the domestic consumption jind use of woollen goods in Japan by compulsory mixing of wool with staple fibre and through, other expedients. Domestic consumption of woollen yarn lias been further restricted by a rationIng ticket system, with a view to increasing exports and building up the foreign trade balance.