TRADE SCHEME INCLUDES N.Z.

Press, Volume CIII, Issue 30535, 2 September 1964, Page 17

TRADE SCHEME INCLUDES N.Z.

Pacific Area Development (N.Z. Press Association—Copyright) CANBERRA, September 1. Japanese and Australian businessmen are planning a Pacific area organisation for economic co-operation and development. It is proposed that Australia, Japan, the United States, Canada and New Zealand be included in the plan.

The plan, to be discussed in Canberra tomorrow at a meeting of the Australia-Japan Business Co-operation Committee, is a counter to the proposal for a Pacific area customs union.

Business circles say the customs union would never succeed because of the vast difference in living standards between the Asian and Western countries concerned. The business co-operation committee comprises 35 top Japanese business leaders and 44 Australian leaders, representatives of industry and commerce. The committee wants to develop closer economic ties and trade relations among Pacific countries. This is an extension of the successful promotion of substantia! Japanese investment in joint ventures in Australia. The talks tomorrow and on Thursday will work toward increased Japanese capital investment in industrial projects.

Australian business circles are confident the tariff board hearing in Melbourne on increased duties on fully assembled Japanese cars will not prejudice the success of the conference. The clash between the car

inquiry and the business talks to promote two-way trade is admitted to be unfortunate. An Australian spokesman said today the Japanese business-, men were not resentful.

They accepted the place of the tariff board in Australia’s economic machinery and respected it as an objective fact-finding body. The Australian-Japanese conference will also have discussion on—

Economic prospects: Although the trade balance is three-to-one in Australia’s favour, Japan will be asked to work for greater co-pros-perity by lifting trade levels. Joint Taxation: Progress has been made on a double taxation agreement for the two countries.

Tourism: Japan will be encouraged further to relax the travel ban; long-range plans contemplate special tourist ships between Australia and Japan. Training exchange: The conference envisages introduction of an exchange system for students, tradesmen, teachers, and executives. It is proposed that it should operate on the lines of the United States Fulbright scheme. Tradesmen would visit the other country for training in selected industry.