Sato Feted In Australia

Press, Volume CVII, Issue 31499, 13 October 1967, Page 15

Sato Feted In Australia

(N.Z. Press Assn.—Copyright)

SYDNEY, Oct. 12. The Japanese Prime Minister, Mr Eisaku Sato, who arrived in Canberra last night, is being freely described as “Australia’s most important visitor this year.” While it may be misleading to draw comparisons between his trip and last week’s visit by Mr Holyoake, there is no doubt that in the eyes of Australian businessmen, politicians and members of the public, Japan today is much more important than New Zealand. An extensive newspaper coverage, including supplements on Japan, editorials, background features and personal articles on Mr Sato, bears out this claim and is in marked contrast to Mr Holyoake’s visit. But while Mr Sato’s visit

has intense significance for Australia, the results of it could be no less important to New Zealand. Japan and New Zealand have one major problem in common in their relations with Australia—a huge trade imbalance. And just as Mr Holyoake came to Canberra to talk defence but missed no opportunity to discuss trade, Mr Sato will be keenly looking for ways to reduce his country’s trade imbalance while he is talking foreign affairs; “The biggest customer is always right—in international trade as well as at the local store," one finance editor wrote this week. This has yet to be proved to New Zealand in its trade re-

lations with Australia, and observers are watching to see if it works out for Japan. While New Zealand is Australia’s biggest customer for manufactured goods, Japan is Australia's largest all-round shopper, buying 20 per cent of all her exports.

But while Japan bought $588.5m worth of Australian goods last year (against New Zealand’s $177.3m), Australia bought only $296.5m worth of goods from Japan.

Weighty Arguments Japan’s trade imbalance is only two to one, against New Zealand’s four to one, but Mr Sato has some weighty arguments which Mr Holyoake could not match. Japan is playing a dual role in Australia unequalled by any other country. Not only is she buying more goods and raw materials, but she is making a significant investment contribution to the development of Australia’s huge natural resources. Australia badly needs out-

side investment to develop its new mineral finds, and welcomes the Japanese method of joint ventures which ensure Australian equity in major projects and will ultimately boost her foreign exchange earnings. Australia is so keen to re-

tain this kind of trading relationship that she is regarded as certain to make some gestures to tip the scales a little more in Japan’s favour. But—and this is where New Zealand comes into the picture—Australia’s tough trade negotiators, headed by Mr McEwen, the Deputy Prime Minister, are sure to demand something in return. Primary Products And, with an eye towards possible British entry into the Common Market, Australia will be looking for increased exports to Japan of meat, butter, cheese and other primary products—the same goods for which New Zealand is desperately trying to find new markets.

New Zealand has the lion's share of Japan’s butter and mutton imports, but Australia sells more beef, dried skim milk and whole milk powder and is challenging hard with cheese.

The chairman of the Australian Dairy Produce Board, Mr E. G. Roberts, has already publicly claimed: “Our trading connections with Japan ensure us of a large share of the market.”