IMPORTS FROM JAPAN

Press, Volume LXXI, Issue 21399, 15 February 1935, Page 10

IMPORTS FROM JAPAN

* PRESENT EXTENT OF COMPETITION TARIFF POSITION DISCUSSED EXPERIENCE OF CITY FIRMS It is popularly understood that Japan is making a bid for a larger share of the world's markets for manufactured goods, and instances are frequently cited of articles made in Japan which are being sold at prices " which appear ridiculously low when compared with the prices of similar articles imported from other countries. Recently two statements have been published, one by an English business man and one by a Japanese business man; the first warned New Zealand against the dangers tb' her indus : tries through extensive Japanese competition and the second denied that Japanese goods were of inferior quality and pleaded for a better understanding between the Dominion and Japan.

Enquiries were made yesterday among firms in the city which regularly import Japanese goods, and it was found that only in one or two cases were Japanese products thought to be competing effectively with other products on the market. It was admitted that some articles made in Japan, of a definitely inferior quality, were demanded to some extent, being mainly cotton socks and other light cotton goods The attitude seemed to be that if Japan, could produce saleable goods at competitive prices, customers were not likely to worry about where the goods were made.

Importation Not Extensive Mr C. O. Trownson, Collector of Customs in Christchurch, said yesterday that there was no very extensive importation of Japanese goods; but it was broadly true, as had been stated by the English visitor quoted above, that even if a tariff of 500 per cent, were placed on Japanese goods Britain and bthei countries would not be able to compete against them successfully. If it were desired to combat Japanese competition, said Mr Trownson, the only course would be to impose a specific duty, as had been done in Australia. In Australia, he believed, cotton handkerchiefs had been landed from Japan at a farthing each. An ordinary ad valorem duty of 50 per cent, on these would amount only to one eighth of a penny; but a specific duty of a penny on each article gave effective protection. There is, of course, no discrimination by the Customs against goods imported from Japan, which pay the ordinary duties imposed on imports othes tnan British. Japanese goods sold in Christchurch to a greater or less extent include wireless, accessories, bicycle parts, chinaware, bicycle and motor-car fyres, cotton clothing, rubbei goods, canvas shoes and a very small amount of woollen goods.

Existence of Agreement It was suggested yesterday in another well-informed quarter that a trade understanding might already exist between New Zealand and Japan, making any discrimination against Japanese goods very improbable. The suggestion was based on information given in the Customs Tariff 'schedule put'lrhed in October of last year. The schedule contains details of a trade arrangement with Belgium, and a statement is appended that the same agreement has been applied by an order-in-council to trade with several other countries, including Japan. This was taken to imply the existence of an unpublished agreement. It would be possible, however, for the New Zealand Government to impose an extra duty of 10 per cent, on Japanc-" goods, as a section of the Customs Amendment Act (1921) provides for the imposition of additional duties on goods coming from countries whose currencies are depreciated. The yen is at pre sent depreciated by between 40 per cent, and 50 per cent., the par rate being 24.58 d to the yen and the present rate only 14d.

Sales in Christchurch The manager of a city retail firm which deals extensively in the lower-priced classes of goods said yesterday that in certain cases where Japan produced good quality articles it was impossible for manufacturers in other countries or in New Zealand tc compete. The best selling Japanese lines were china and glassware, and it was impossible to imagine British manufacturers producing goods of equal quality at anything approaching the Japanese price. He indicated some handpainted cups and saucers, which in finish and * general appearance seemed equal to similar lines made in other countries, saying that there were workers in Japan who would paint china all day for twopence. Apart from the lines mentioned, however, and some small hardware, including electrical fittings, this firm imports very few Japanese goods. Japanese rubber goods are considered to be of a good quality, but handkerchiefs, socks, and other soft L'oods are apparently not up to the standard demanded by New Zealand people. Two years ago, the manager stated, 93 per cent, of the goods in the v shop were of British manufacture, and the proportion was probably much the same to-day. But there was no doubt that where the Japanese had achieved a reasonable quality their prices defied competition. Japanese Industry A step towards more satisfactory trade relations between the British Empire and Japan was made last year, when a trade mission was sent to the Far East by the Federation of British Industries, with the intention of exploring the possibilities of closer co-operation between the industries.and trades of the two countries. The report drawn tip by the mission contradicts a rather common idea of conditions in

Japanese industry. The report stated, inter alia: "From what we saw and from what we gathered from other sources, we must point out that it is inaccurate to describe labour in the major Japanese factory industries as operated under sweated conditions." Commenting on this report, Mr S. Matsuyama, commercial counsellor of the Japanese Embassy in London, wrote early this year that on the impartial evidence 'of the report there was clearly nothing in the foundations and organisation of Japanese industry which would justify .the allegations so frequently made in respect of labour and other conditions in Japan. The mission had been welcomed by the Japanese as a means of dispelling some of the misunderstandings which existed even among the most prominent people in England.