N.Z. REJECTS JAPANESE OFFER FOR COAL

Press, Volume XCVIII, Issue 28921, 15 June 1959, Page 12

N.Z. REJECTS JAPANESE OFFER FOR COAL

(N.Z. Press Association—Copyright)

TOKYO, June 13.

A spokesman for the Japanese steel industry said yesterday that leading Japanese steel mills, including the Yawata and Fuji Iron and Steel Companies, have decided to suspend current negotiations with New Zealand for the import of coking coal from the Paparoa area, “for the time being.” This decision was made following the recent rejection of a Japanese proposal on the import price coal at a New Zealand Cabinet meeting, the spokesman said.

They also expressed no intention to buy coal at higher prices than those paid by Japan for American and other coal, he added. The spokesman said, however, the companies were still willing to reopen negotiations with New Zealand.

The spokesman said two Japanese trading firms—Mitsubishi Shoji and Ashi Bussan Kaisha—had been chosen to negotiate with New Zealand on behalf of the steel mills. Local trade sources said the price Japan had proposed to New Zealand was 90s per ton on a f.o.b. basis. They said New Zealand was capable of supplying between. 8000 and 9000 tons of coking coal annually. A Press Association message from Wellington says that the Prime Minister (Mr Nash) said on Saturday he had nothing to add to his previous comment on the negotiations that New Zealand would sell the coal to Japan at a “fair and reasonable” economic price. The price offer by Japan was not satisfactory. The Secretary for Mines (Mr C. H. Benney) said that had the

Japanese price offer been accepted for coking-coal shipments, New Zealand would have suffered an annual loss of about £150,000. He said that the Japanese offer to the coalmine owner came to an effective 88s a ton f.o.b. and trimmed. At that figure the loss to the owners would have been substantial. Japan had guaranteed to take supplies for one year only.