PRIVATE TRADE WITH JAPAN

Press, Volume LXXXIII, Issue 25207, 11 June 1947, Page 7

PRIVATE TRADE WITH JAPAN

RESUMPTION IN AUGUST U.S. OFFICIALS EXPLAIN PROCEDURE WASHINGTON, June 9. The resumption of private trade with Japan will be permitted from August 15, according to an announcement by the War and State Departments today. Private commercial representatives of foreign countries will be allowed to enter Japan under a quota system to deal directly with Japanese manufacturers for the purchase of their products. Japanese foreign trade since the occupation has been channelled through the official United States Commercial Company. To-day’s announcement said that the resumption of private trade with Japan is expected to contribute to Japan’s rehabilitation and assist in stabilising Far East trade. Only 400 foreign trade representatives will be allowed in Japan at one time until the accommodation position improves. Entry permits will be issued by the Inter-Allied Trade Board of the Far Eastern Commission in Washington. It is not planned to establish an official foreign exchange rate for the Japanese yen until a flow of export trade in a wide range of commodities has been established. State Department officials explained that for the time being a foreign buyer would select Japanese goods, and the Japanese Board of Trade would pay the manufacturers a fair price in yen based on conditions in Japan. The foreign buyer would then pay for the goods in United States dollars or other accepted foreign currency by remitting to General MacArthur’s export fund a price based on a fair world market value. Allied officials would use these fund£ to buy more raw materials abroad for the use of Japanese manufacturers. All transactions consummated through private negotiations would be licensed by the Japanese Government and validated by General MacArthur’s headquarters. General MacArthur commented: "Japan is a country so lacking in indigenous materials that it must trade or starve. In spite of this latest action, Japan’s economy will remain precarious until trade is completely restored to normal channels, which means private channels. “While the present measure is merely a palliative, it is probably the best possible until we have peace. It will give some measure of relief to all concerned, but it falls far short of a full economic solution. This can be attained only by the peace treaty, and the sooner this is accomplished the better, not only for Japan, but for the world.”