Japanese Cars In Aust. May Face Higher Duties

Press, Volume CIII, Issue 30530, 27 August 1964, Page 13

Japanese Cars In Aust. May Face Higher Duties

IN Z. Press Association—Copyright) SYDNEY, August 26. Australian automotive manufacturers’ fears of the growing popularity of Japanese-made cars is believed to be the reason the Federal Government has ordered a special tariff board hearing into motor duties, says the Sydney “Sun.”

The newspaper said the board will meet on Monday to discuss the rates of duty on fully assembled foreign vehicles exported to Australia. Both the Japanese and Australian car manufacturers will be strongly represented. The Japanese Government is unlikely to intervene, but will closely watch the proceedings, the “Sun” said. Three Australian-estab-lished car firms have recently held special conferences to plan ways of fighting off the rising Japanese challenge, which Is making inroads into the Australian car industry. The Japanese are landing

fully assembled vehicles tn Darwin, Townsville and Fremantle, but of the 55 Japanese models only three are re portedly being assembled here. The “Suh” said many graziers are buying Japanese cars on a reciprocal basis—- “ You buy our wool, we'll buy your cars.” Full-scale Drive The Japanese pointed out today that the tariff board meeting coincided with their full-scale drive to capture at least 6 per cent of the Australian car market during the balance of 1964 Japanese manufacturers also feared that the board may recommend prohibitive duties on fully ' imported Japanese vehicles to force them to construct assembly plants in Australia. Importers are concerned that Japanese anger at the holding of the inquiry may possibly threaten the highly profitable commerce conducted by Australia and Japan Last year Australia sold Japan goods to the value of £244.3m and bought in return only £Blm. Japan was beaten by only £llm by the United Kingdom as Australia’s best cutomer. Strong Protests The Japanese Consul tn Sydney, Mr K. Wada, said today the Japanese Government would make strong protests to the Australian Board of Trade if duty on imported build-up cars were increased. “But in my opinion, there

would be no retaliatory tariffs brought in on Australian goods being imported by Japan,” he said. Although extra duty on car would disappoint the Japanese, I do not think my Government would impose extra tariffs, on Australian goods. “Revenge tariffs soon multiply and create impossible trade conditions. All Japan wants with Australia is free trade,” Mr Wada said.