Five-Nation Pacific Trade Group Planned

Press, Volume CII, Issue 30121, 3 May 1963, Page 11

Five-Nation Pacific Trade Group Planned

(N.Z.P.A.-Reuter—Copyright)

TOKYO, May 2.

An influential organisation of leading Japanese businessmen said today it was working out a proposal for a regional organisation of five Pacific nations for closer economic co-operation to counter the European Common Market.

The Japan Economic Research Association, composed of representatives of four leading business bodies, said the plan called for the establishment of a round-table conference at government level of Japan, the United States, Canada, Australia, and New Zealand.

The proposed organisation was provisionally named the Organisation of Pacific Economic Cooperation, the association said.

It would have a permanent secretariat and research organs.

South-east Asian countries will be invited to send their representatives as observers.

The association said the

proposed organisation would discuss expansion of trade among the five member nations, development of their economies, and promotion of their cultural inter changes. Discussions at the conference were also expected to help the five nations adjust their economic policies, increase efficiency in supplying assistance to underdeveloped countries, and strengthen their position in dealing with the European Common Market, the association said. The association said . the five Pacific nations had a total population 1.8 times that of the European Common Market.

The comt ined total of their national incomes was 3.5 times that of the Common Market nations. The five nations also ex-

ceeded the Common Market in the production of steel, cement, motor-cars, and cotton textiles.

Inter-regional export trade among the five nations in 1961 amounted to 11,600 million United States dollars, compared with similar trade among the Common Market nations estimated at 11,900 million dollars, the association said. It noted that interests of the five Pacific nations were partly competitive rather than complementary. The United States exported heavy industrial and chemical goods, w' eat and raw cotton; Japan, labour-inten-sive manufactured goods: Canada, wheat, timber, metal ore and their processed goods; and Australia end New Zealand, -heat, raw wool, and dairy products.

The association said, however, that Japan could double or triple her imports of agricultural dairy products by 71, while the removal of restrictions on the imports of Japanese goods by the United States, Canada, Australia and New Zealand, would als> help expand trade in the area The association said trade among the five nations increased 44.5 per cent, during the last six years in terms of exports. The association also said Japan could help Australia and Canada develop their resources.

It would be ideal if some country other than Japan could propose a similar organisation, because the proposal, '■oming from Japan, might cause suspicion among South-east Asian countries.