Japanese supporter of N.Z. resigns over dairy policies

Press, 12 January 1981, Page 2

Japanese supporter of N.Z. resigns over dairy policies

By Bruce Roscoe in Tokyo A high-ranking official of the Japanese Ministry of Agriculture, Forestry, and Fisheries has resigned in an apparent move to take- responsibility for. the Ministry’s failure to implement two ■ import-restrictive dairy policies which New Zealand is protesting against.

Mr Koji Inubnshi, Director General of the Ministry’s Livestock Bureau, whose duties included imposing an import quota by November I last - year -to. , restrict New Zealand’s compound butter or edible fats exports, and the . . establishment of a natural cheese factory in Japan’s' northern island of Hokkaido, ..resigned on January 6."

Japanese news sources within’ the Ministry said last week that Mr Inubushi had been made to take responsibility. for the delay in implementing the quota. The withdrawal of 12 big cheese processing companies from the Ministry’s fac’try plan was also a factor in the decision, the sources said. Mr Inubushi, who held the post, of Director General since July, 1979, had worked as an Agricultural Ministry public servant for 30 years. In a speech he gave to Ministry news sources shortly before his .resignation, Mr Inubushi reportedly made direct reference to both dairy issues. He reportedly said he regretted being

unable to resolve the issues, and that his work aS Director General was “incomplete.” He is being replaced by Takao Morizani. New'; Zealand trade officials in Tokyo see the resignation as an indication of the high priority the Ministry is attaching to the dairy policies, but point out that the former Director General was approaching or at retirement age. His new post, however, as vice-president of the Ministry’s Livestock Industry Promotion Council, has been described as “ornamental.” New . Zealand’s increased exports of the butter product, from tonnes in, 1979 to more than 16,000 tonnes last year, have angered Japanese dairy associations who view any imported dairy material as a threat. But in the face of continued opposition from New Zealand and Belgium, an E.C.C. member, Japan’s Ministry of International Trade and Industry appears still to be resisting pressure from the Agricultural Ministry to approve the import quota. If implemented the quota could result in a severe curtailment to almost $20.8 million in yearly trade with Japan. A, high-p.owered delegation of Japan’s. Hokkaido Dairy Industry leaders has requested an audience with the New Zealand Prime Minister (Mr Muldoon) during its visit to Wellington this month. Lead by the chairman of the Central Union of Hokkaido Agricultural Co-oper-atives’ Association, Mr:

Masakichi Hayasaka, the delegation, which may also include Hokkaido Government officials, is scheduled to arrive in Wellington on January 28 for talks with the New Zealand Government and Dairy Board. ** Trade officials in Tokyo say the delegation intends to seek New Zealand’s' understanding of their need to proceed with the cheese plant, which has been the subject of an aide memoire protest by the New Zealand Government, and reassure New Zealand that the proposed production scheme will not . adversely affect New ' Zealand’s cheese exports to Japan. The delegation will; also stress that no changes in the Custom tariff schedule for cheese imports -will result from the domestic production of natural cheese. .

The delegation’s decision - to go to New Zealand is r seen in Tokyo as evidence of i the determination of Hak- - kaido Dairy Co-operatives to : push ahead with the factory i plan in: spite of the decision : of big cheese processors not i to take part. Before arriving in WelI lington, the delegation is also scheduled to visit Melbourne- to convey a similar message in a bid to ease Victorian dairy farmers’ fears that growth in their cheese exports to Japan may be undermined. Japan, New Zealand’s largest market for cheese, imported 24,482 tonnes of cheese from New Zealand in 1979 and 12,365 tonnes in the first six months of, last year. 1