Protectionism out, says study group

Press, 27 December 1979, Page 14

Protectionism out, says study group

Last month, a private consultative council to the Japanese Prime Minister submitted an interim report on Pacific Basin Cooperation. A final report is to be submitted in the northern spring, when it is planned to hold a symposium of representatives from Pacific nations. The Pan Pacific idea, as it is sometimes known in Japan, has been discussed by various regional groupings, including the Pacific Basin Economic Council, composed of businessmen from Japan, the United States. Canada. Australia and New Zealand, and by the Pacific Trade and Development Symposium, an organisation of scholars. Private organisations, such as the Nomura Research Institute, of Tokyo, have done research on the concept, and there has been political and academic interest in the United States.

The idea will be discussed at Japan-Australia and Japan-New Zealand summit meetings in a few weeks, and there have already been discussions between the Japanese and A.S.E.A.N. Finance Ministers.

The Japanese Prime Minister’s consultative council (the Pacific Basin Co-operation Study Group) says in its interim report that, for the first time in history, all of the prerequisites are ripe for the creation of a true regional community in the Pacific basin. The study group’s

phrases are very wide, general, and almost Zenlike. It seems to base the

possibility of union on the fact of diversity: “. . . in today’s world "... it is impossible to attain peace and prosperity except through co-operative relations premised on diversity.”

But it is specific on economic goals: “In economic aspects, the direct goal is that of promoting free trade and capital transfer.”

It emphasises strongly that there should be no protectionism. Other specifics are the encouragement of Japanese society to become outward-looking, improved transport, the exchange of people, more open policies on immigration. co-operation in the development of marine resources, and restructuring industry “while maintaining and strengthening free trade principles.” Japanese Foreign Ministry officials feel that Australia has been showing quite strong interest in the concept, and that the United States is becoming more interested, but that New Zealand is a little sceptical. One official said that with the Ohira Government, Japan had become very interested in the “dynamic development’’ of the Pacific region. By the term he meant economic development and a greater degree of interdependence. •He emphasised that the type of co-operation envisaged would be very different from that of the European Economic Community. “We see diversity rather than the common factors that exist in the E.E.C.” The Pacific Community might be more akin to the British Commonwealth.

Japan has not yet had many official reactions to the Community proposal. It has just explained the nature of the report to some Pacific Basin countries.

Officials emphasised that, the concept was not aimed at substituting for any previous agreements: it would not override any existing bilateral arrangemts, such as between Australia and New Zealand. (In fact, Japan supports closer Aus-

tralian and New Zealand ties).

Although there is some support for China's inclusion in a Pacific Community, the official Japanese view is that each member should have some element of a free-market economy.

The plan is not that the Pacific Community will be a club of developed nations. Because of this, Japan has been careful to assure the A.S.E.A.N. nations it will not affect their relations with Japan, and these nations are potential members.

Apart from economic development, the Pacific Community concept is one. of the anwsers to pressures on Japan to play a political role in the world more in line with her new and still growing economic power.

It also reflects personal interests by the Prime Minister (Mr Ohira) and the Foreign, Minister (Mr Okita) in the concept. Their Government has a paper-thin majority, and any successes they can gain on their visits soon to Australian and New Zealand would doubtless be welcomed. But in recent press conferences with New Zealand journalists in Toyko, both emphasised that there was no pressure for acceptance of the Pacific Community idea: if it was not wanted by the nations of the Pacific, it would be shelved.

Mr Okita emphasised that Japan was open to ideas on the Community, but the Minister did say that it should be seen as an organisation of cooperation similar to the O.E.C.D. rather than the E.E.C. He emphasised that there could be no preferential trade arrangements, and later in the conference ruled out any possibility of a defence grouping. He felt it would take some time before anything concrete came out of the plans. There might have to be consultations of experts. The firs question to answer was whether the Community was necessary; the second was what were the topics to be dealt with by a regional approach.