Japan-N.Z. Relations May Develop In 1959

Press, Volume XCVIII, Issue 28802, 24 January 1959, Page 4

Japan-N.Z. Relations May Develop In 1959

IFrom R, E. BLAZE?, Tokyo Cormpondant of “Ths Press") TOKYO, January 15. In a New Year schedule of dignitaries expected to visit Japan this year the Japanese Foreign Ministry lists a visit by the New Zealand Prime Minister (Mr Nash) in March or early April. The Japanese have been pressing for an answer to the Prime Minister, Mr Kishi’s, invitation made some time ago and Tokyo sources reported the visit was being considered in Wellington and that an announcement was expected shortly.

If Mr Nash comes, the Foreign Ministry says, Japanese officials and businessmen will be particularly interested in talking to him about New Zealand’s recent trade mission to Communist China and about results achieved. The Japanese are very interested in the China trade mission because like Japan New Zealand has no formal diplomatic ties with Communist China but wants to trade just the same. Mr R. G. Hampton’s remarks about the •‘enormous possibilities” for New Zealand exports to China were widely reported in Japan after the Singapore Trade Commisioner’s findings were released. Up to date the Japanese have had a very unhappy experience in trying to do business with China. There was trouble and a complete rupture of trade when the Communists tried to use trade inducements to gain a form of diplomatic recognition from Japan. The Japanese Government refused to concede a Communist trade mission the right to raise the Communist flag over its offices, the Communists stopped trade in retaliation, refused to allow Japanese trade fair exhibitors in Wuhan and Canton to sell their goods or take them out of the country and demanded' that the Japanese Government pay the “debts” these traders incurred in rentals and for other “services” conjured up by the Communist authorities. Experienced Audience If Mr Nash talks China trade to these men he will find himself with an experienced audience. For their part they will probably advise Mr Nash and his entourage to look before leaping into the China market Should Mr Nash come to Japan in March he will be given the state guest treatment like his predecessor, Sir Sidney Holland, who visited Japan in 1956. He will be received at the Haneda International Airport in Tokyo by the Japanese Prime Minister and Foreign Minister, and envoy from the Emperor and a military band which will salute the New Zealand Fnme Minister with the New Zealand and Japanese national anthems—in that order—ag he steps down the ramp from his aircraft At the end of the receiving line Mr Nash will probably make a short statement to the press and public saying how happy he is “to visit your wonderful “hi see for myself etc, i„T he^.. he J' ri, l t"*lsked away in a big black limousine to the state guest house, the “Geihinkan, a former palace for Japanese royalty, where he will be ahie to enjoy quiet seclusion or a walk in its spacious gardens. Busy Days During the busy days after that Mr Nash will be received in audience and take lunch with the Emperor and Empress and the crown Prince, face a barrage of questions and popping flash bulbs at a press conference for foreign and Japanese correspondents (and be asked the inevitable question Zealand d <>es not admit Asian immigrants), make a series of calls on the Japane.se Mme Minister and Foreign Minister,. a number of factories, textile and steel mills and be entertained and persuaded generally of what a truly wonderful country Japan is.

The visit, should it transpire, will give New Zealand - Japan trade a much-needed stimulus and assist toward a better understanding of the new Japan. Since the conclusion of the trade agreement last September the trading position has remained stagnant. This has been mainly caused by foreign exchange and reserves difficulties on both sides and a mutual reluctance to import. Japan’s position is now much improved and the recent move toward freer convertibility of European currencies has given the Japanese an added reason to press development of markets in Asia, Africa, South America and the South Pacific where the competition is not expected to be so fierce. It is thought here that the Japanese will use tariff concessions in both the trade agreement and the revised Ottawa agreements to negotiate for an increase in exports to New Zealand. The Japanese are particularly interested in developing new markets for light and heavy machinery as well as expanding old ones for textiles, steel and sundry items. Motor Industry The motor industry is hopeful and exports of scooters and light motor - cycles have begun. The makers of sewing machines, electrical appliances and light industrial equipment also see openings in New Zealand. Heavy Industry and construction companies see no reason why they should not get a share in big development projects. The thing that may put Japanese industry really on the map in New Zealand is the possibility of a Japanese trade exhibition in Auckland and Wellington. Mr Yasumi Saito, a director of the Japan External Trade Promotion Agency, said before leaving for Australia recently that he was also going to New Zealand early in February to “examine the possibility” of holding exhibitions in New Zealand with exhibits from the Sydney and Melbourne fairs. Japan has spent a large sum of money and has planned big exhibits (more than 1400 items) for both these fairs. If interest in New Zealand is strong enough a fair could easily result and do as much good for Japan’s economic diplomacy as a New Zealand Prime Minister’s visit here would do for New Zealand’s static exports to Japan. Judging by the latest figures put out by the Trade Ministry here the old faithfuls in New Zealand exports to Japan, Wool, hides and skins, tallow and scrap iron, are holding their own but total earnings are down from 7,903,780,000 yen, (approximately £7,903.760) for the nine month period from January to September, 1957, to 5,822,126,000 yen (£5,822,126) for the same period in 1958. Interest in Beef Japan could not afford the high prices for beef in 1958 and was well stocked in any case but interest is now reviving and prices are rising to the point where the bigger Japanese importers are beginning to inquire for New Zealand beef. Coal and lumber have now become the two bright stars for the future in trade with Japan. The Japanese steel mills have drawn up a long-term plan to diversify sources of supply and have contracted with Australia for 300,000 tons of coking coal a year. If New Zealand’s resources are found to be adequate to guarantee a steady supply over a long period the Japanese would like roughly the same amount from New Zealand. Japan has been buying about 300,000 to 400,000 cubic feet of lumber from the Soviet Union during the last two years but there have been many complaints about poor quality, high prices and indifferent deliveries. A recent report put out by the Japanese Trade Ministry described the situation as “most unsatisfactory” and suggested a change in the sources of supply. A switch like this could obviously benefit New Zealand. From thia year the trade agreement is expected to take effect and trade both ways should expand substantially, according to New Zealand and Japanese trade authorities in Tokyo.