Japan’s Trade Figures Below Pre-War Level

Press, Volume XCIX, Issue 29339, 19 October 1960, Page 19

Japan’s Trade Figures Below Pre-War Level

The large population in Japan was one of its greatest assets but also a burden on its economy, said the Japanese Ambassador to New Zealand (Mr S. Ishiguro) in an address to the Christchurch branch of the Economic Society of Australia and New Zealand last evening. Japan was only slightly larger than New Zealand but had to support a population of 100 million, compared to New Zealand’s two and a half million, he said. The large labour market had been used advantageously by Japanese manufacturers, particularly so in the textile industry, where mainly young women were employed on low wages. Forty per cent, of the labour market was employed in agriculture and it was a noticeable trend that large factories now tended to move into the country where there was cheap labour. “But the large population has meant a struggle in increasing living standards, although more effective birth control has helped lessen the problem,” he said.

Because it was a country poor in natural resources Japan had to

become a manufacturing and trading country—selling its skills and industry to the world. Always known for its textiles Japan was now moving into industrial markets. The day of cheap goods and poor imitations had gone, said Mr Ishiguro. Largest Shipbuilders Japan was now the largest ship building country in the world. Cheap labour was still an important part of its economy but more money was being spent on research into electrical goods. At present an invention was nearly ready that wou.d make the transistor radio out of date. Mr Ishiguro said that in the last few years Japan’s increasing exports had meant it had an exchange balance of £soom.

which enabled it to reduce its import restrictions. Though Japan’s export trade was increasing it was still not considered by the economists to be fast enough. In 1960 the probable figure of exports would be £ 1600 m. New Zealand’s figure in 1959 was £29om. ‘We are far behind you on a per head basis and our trade has not caught up to the pre-war figures,” he said. Japan’s standard of living was increasing but it was still well below that of other major industrial countries. The national income at present was £llO a head a year, which compared unfavourably with the United States (£600), United Kingdom (£350) and West Germany (£300). Japan was well above other Asiatic countries and ranked twenty-seventh out of 100 countries.

Japan was in favour of disarmament because it had firsthand experience of nuclear war and because it needed all available capital to extend trade. Japan-N.Z. Trade Discussing trade between Japan and New Zealand Mr Ishiguro said Japan was New Zealand’s largest market in Asia and had taken two-thirds of New Zealand’s exports to Asia in the last few years. As the standard of living in Japan rose more meat and wool would be purchased. ‘ ‘But it has to be a two-way trade and I am pleased to see that you are increasing your imports from Japan,” he said.