The Press SATURDAY, OCTOBER 26, 1974. Mr Tanaka’s visit

Press, Volume CXIV, Issue 33675, 26 October 1974, Page 16

The Press SATURDAY, OCTOBER 26, 1974. Mr Tanaka’s visit

The Prime Minister of Japan (Mr Kakuei Tanaka) is one of the busiest travellers among world leaders. In the last two years he has visited China, the United States. Mexico. Brazil. Canada, the Soviet Union and many countries in Europe, South-East Asia and the Middle East. Other senior Japanese politicians have also been travelling widely in recent months. The Foreign Minister of Japan (Mr Toshio Kimura) is at present in Africa. The purpose of much of this travel has clearly been to assure Japan of an uninterrupted flow of raw materials on which the Japanese economy depends.

In many of the countries which supply these raw materials and which serve as markets for Japanese manufactured goods. Japan has a reputation of being bent on securing only its own advantage. While the Japanese talk about “ mutually beneficial co-operation ”, many political leaders abroad, and particularly those in South-East Asia, claim that the real purpose is much more selfish on Japan's part Japan's approach to international trade is probably not notably different from that of any other country; but the size, efficiency, and thrust of Japanese industry undoubtedly’ has an influence on trading partners that is sometimes alarming — particularly on those whose industrial development is lagging. In its recent dealings with New Zealand, Japan has not hesitated to press for its own advantage: nor is New Zealand a country that can afford to be anything but hard-headed in dealing with big and powerful trading partners. Japan has temporarily banned beef imports from New Zealand and other countries, and has declined to give assurances that New Zealand meat and dairy products will continue to have access in definite amounts to the Japanese market On the three occasions this year, when New’ Zealand Ministers have been in Tokyo, the Japanese have not responded favourably to representations on this point. Recently the trade in logs and sawn timber continued only when New Zealand agreed to a reduction in volume and a decrease in price. At present New Zealand has the advantage in its trading relationship with Japan. Japan is New Zealand’s third largest market, only slightly behind the United States. For more than two decades the balance of trade has been generally in New Zealand’s favour. Japan is now in dire economic straits. The Japanese Government may feel that it w’ould only be equitable if New Zealand were more generous in assisting Japan to secure raw materials. Since the Japanese are reported to be annoyed by the nationalistic policy on resources being pursued by the Australian Government, Mr Tanaka may try to persuade the New Zealand Government that Japan should be given a reasonable opportunity to share in the exploitation of some of New Zealand’s resources. Japan secures much of its lead, copper, and zinc from Canada, and the Canadians have recently insisted on significant Japanese investment in processing plants in Canada as a condition for continuing to supply Japan with these metals. New Zealand should be cautious about entering such an arrangement with Japan, even while the demand for overseas capital runs high. Long-term flexibility in the sale of New Zealand’s manufactures will appeal to most New Zealanders much more than an endless partnership with the Government or industrialists of Japan. Much can be said in favour of the interlocking of business interests between countries so long as they are readily subject to governmental control. But New Zealand has other courses to follow. To encourage Japanese acceptance of New Zealand’s exports this country still has to make more room for imports from Japan. The times de not favour this at present, and further changes in tariffs might upset New’ Zealand’s important relationship with Britain. But New’ Zealand has time enough to negotiate a plan for the future exchange of commodities such as coal and timber products. However eager it may be to encourage exports, the New Zealand Government is bound to approach Mi Tanaka's visit with caution and firmness.