JAPAN AND INDIA.

Press, Volume LXIX, Issue 20881, 14 June 1933, Page 9

JAPAN AND INDIA.

BOYCOTT OF COTTON. ANTI-BRITISH PROPAGANDA INCREASING. (UNITED PRESS ASSOCIATION —Br ELECTRIC TELEGRAPH—COPTRIGHT.) KOBE,. June 12. A unanimous decision was assured to-day for the Japanese cotton spinners' boycott of Indian cotton. Anti-British , propaganda is increasing, the general declaration being that the duties imposed by the Government of India on Japanese goods were forced by the British Government against India's wishes. Publicists discuss the advisability of assisting toward "Indian emancipation from the alien yoke." The Japanese Foreign Office declares that world peace is jeopardised. CALCUTTA OPINION. RESENTMENT AGAINST JAPAN. CALCUTTA, June 12. Insinuations by Mr Miyake, Con-sul-General for Japan in India, that "the underlying motive" for the increased tariffs against imported Japanese piece goods is that Great Britain should regain what she lost by the boycott, and that the whole business had been engineered in the interests of Manchester, are strongly resented. After surveying the Indian piece goods industry, which has been brought to complete ruination by Japanese dumping, the Calcutta newspaper "Englishman" says:— "The propaganda carried on by the Japanese authorities in India is ill-advised, and would not be tolerated except in such an easygoing empire as the British Empire. It is designed to create ill will between Lancashire and India, and to prove that Lancashire, not Japan, is the enemy of Indian industrialism." EFFECT OF CURRENCY DEPRECIATION. THE YEN AND THE RUPEE. INADEQUACY OF DUTIES. SIMLA, May 11. "Japanese dumping is directly caused by the depreciated currency of that country. It is a new evil and as none of the old methods can deal with it effectively a new scheme will have to be devised," said Mr J. Ramsay Scott, M.L.A., in the course j of a statement to the Associated | Press on practical methods of deal- | ing with the problem. Continuing, he said: "The Government has tried the old method of a straight duty, but this is no use in an emergency such as this, for any further fall in the value of the yen immediately nullifies the protection given as it did last year. "Last year the par value of the yen stood at 137 rupees for 100 yen and the duty on cotton piece goods was 31J per cent. When Japan went off the gold standard the yen dropped to 106 rupees per . cent. The Tariff Board had examined the position, and suggested increasing the duty by 183 per cent, to 50 per cent, on the supposition that the yen would standardise itself at 106 rupees per cent. The Government delayed acting on the Tariff Board's recommendation and when they finally took action in August last the yen had dropped to 80 rupees for 100 yen. The position was then that the duty went up by 18;| per cent, while the yen had dropped 57 points and nothing has been done since by the Government to restore the status quo. Plight of Indian Mills. "The manufacturer was feeling the Japanese competition when the Japanese landed cost was 180 rupees. He cut his prices down, with the result that profits dropped to vanishing point. Supposing the Indian manufacturer's cost was 170 rupees when he was selling at 180 rupees. That meant he was making a mere 6 per cent., although I do not believe the majority of mills, if an average had been taken, were making even this modest return. Today, the Indian manufacturer is faced with Japanese goods coming in at 120 rupees, whereas his cost is 170 rupees. "It has been said 'Put your house in order,' 'Get your overheads down' or 'Your costs are too high,' but can a manufacturer be expected to bring his costs down by as much as 35 per cent? If it had been a question of a 5 per cent, reduction in cost it might be possible by working overtime, night shifts and reduction in wages. Wages are high in India compared with Japan, where an operative gets about 5-8 rupees for a week of 64 hours. Suppose the manufacturer does get his costs down by 3 per cent., that would that his cost would come down to 161.8 rupees. The Steps to be Taken. "The question is, what the Government can do to help him? A 75 per cent, duty would bring Japanese figures up to 140 rupees, which would still be inadequate and the only duty which would restore the balance would be 100 per cent., which would mean that the Japanese landed cost would then be 160 rupees.

"Now look at the consumer's point of view. Goods which last August cost 180 rupees, now cost 160 rupees, so that he is much better off than when the duty was 31 per cent., and as a consumer must expect to pay an economic rate for his purchases, the manufacturer is surely entitled to some small return for his outlay. This looks quite simple but suppose the yen drops still lower, as it easily might, and suppose it dropped to 60 rupees for 100 yen, then the duty of 100 per cent, would be useless and a duty of 166J per cent, would be required." Mr Scott finally suggested that the duty should be imposed with the yen par rate fixed at 80 rupees, and rising as the yen exchange declined.