IMPORTS FROM JAPAN

Dominion, Volume 29, Issue 149, 19 March 1936, Page 2

IMPORTS FROM JAPAN

“Position Worse Than We Realise” METHODS OF OVERCOMING DIFFICULTY "There i.s no doubt that in some lines the competition of Japanese imports is pushing United Klngduui goods off the market,” said the United Kingdom ■ Manufacturers and New Zealand Representatives’ Association in a statement yesterday. “The alleged lower standard of living of the Japanese is blamed a great deal for the reason why they are able to produce and land their goods so cheaply on this market, but this term is used rather loosely,” the statemenlcontinues. "Standards of living are relative, and the Japanese standard to themselves is not low, but, the important point is that if we had to get down to their standard then we would consider that very low indeed. "The depreciation of the yen is largely responsible for the increase in Japanese imports, and we understand that this was done without any increase in the internal costs of production—a unique achievement. The problem can be overcome without in any way offending a country which, after all. has been a very good ally of ours, and the past Government was approached by us on the subject, but no action was taken. In fairness we must say that we have not yet had an opportunity of approaching the present Government. ‘‘The problem is one in which the politicians must take a hand, as the commercial people have done their best to meet the situation by cutting the cost of their products as fine as possible. Two Remedial Methods. “There are two obvious ways by which the situation can be met which could not be taken as a penalty against Japan, but which would give the United Kingdom manufacturer a fair deal. Ad valorem duties as at present, levied are useless. Specific duties for so much per yard, or so much an article, would overcome the problem, but their are certain practical difficulties in the way, and these are not insurmountable and are, we understand, in force in India. Another method, and one which is required against other countries besides Japan to overcome the advantage gained from depreciated currency, is an exchange damping duty similar to the method operating in South Africa. Under this system the yen (in the case of Japan) is assessed in terms of the importing country's currency and an exchange dumping duty in addition to those otherwise prescribed is levied. In other words, the exporting country's currency is brought to a proper level. In London the Customs officials check declarations of values, but in Japan no such cheek is made. Fixed Currency. “With a meastjre/of:value that, is manipulated, there is; nothing , to build on and confidence iafi never return to, trading, either nationally or internationally, until the measure of ' alue is fixed and inviolable in the same way as the standard measure of length anti . weight. A manipulation of the measure i of value in one country automatically sets up repercussions everywhere, and so it will go on ad infinitum. To-da\ New Zealand is loaded with Japanese goods for which the depreciated yen is largely responsible, to the detriment of our best customer, the United Kingdom. This could .be alleviated YY’hat the Japanese do with their yen in their own country is no concern of ours, but it ought to concern us when their goods are shipped to New Zealand on a depreciated currency. Onr Government ought to recognise uo other measures of value except Che established and standard par rate of exchange of the yen. If. as an example, the par rate is 2/04. and the current rate 1/2, duties ought to be assesses on the par rate, and tlie amount of tlie depreciation collected as additional revenue with which our taxation could be relieved so that, with a duty of say--10 pe r cent, it would mean (using the above figures.) an amount of about 2id. for duty plus 104 d. to cover the amount of the depreciation of the yen —total 1/1. The taxpayers can do with it, and as far as we can see. such a basis amounts to a sane business proposition as it only brings to a standard meaure of value the manipulation of Hie measure of value of another cmntry. The same could be done with other countries, not only Japan. The powers that be would not countenance in New Zealand one grocer selling 12oz. to tlie pound when all others are restricted to selling 16oz. to the pound. Compulsory Branding. “In regard to certain lines, crockery and so on. provision for compulsory branding with the eountty of origin would prevent the present practice whereby the public are deceived by inferior imitations of weli-ki.o’vu English products. The buying public should watch out for this practlci ami insist on getting what they ask tor. All crockery and similar articles from England are branded "made in England” and therefore any articles purporting to be English and not so branded must be foreign imitations. “It must also be realised that while at present Japanese competition is threatening United Kingdom industries, the time is not far distant when Japanese goods will be imported into New Zealand in competition with local manufactures —for example, woollen goods—ami it is obvious that if this is not prevented it means the closing ■ dewn of those New Zealand industries In this connection it is interesting to Note that, within the last few days the local manufacturers have requested the Government to take action regarding the importation of Japanese braid and soft hats by tlie imposition of a specific duty. This bears out the seriousness of the position, and must impress the Gov t-rnment with the urgency for a review of all lines affected —not only hats - r.ow that the interests of both United Kingdom manufacturers ami New Zealand manufacturers and work-people are in jeopardy Living Standard Menaced. “The aim of the present Governmen’ is to maintain a reasonable standard of living for the community. Tiiicannot be done if the country is inundated -with goods from a country with a depreciated currency and with n different standard. How can a retailer keep his present wages with the lower turnover as a result of handling these goods? 'Pile following Illustrates the point : —Year 1930; Overhead, £500; sal ary to staff. £250: utmost turnover, i 1000 dress lengths: price per yard, 4/6; 1935: £5OO. £250. 1000 dress lengths, 17 6. "From this it can be seen that the

present overhead and salary cannot be maintained with such a reduced value of output, and accordingly expenses such as salaries must be reduced to balance. Reduced salary means reduced standard. It is alleged that Japau is more efficient than Knghind in her methods of production, but this, together with Japan's lower labour costs, does not enter into the problem, because if the most efficient production (.hint in Japan together with its labour were transferred to Great Britain and. its work-people were paid in Japanese currency it could not export to New Zealand in English currency and compete successfully with a third-rate mill in Japan, solely as a result of Japan’s depreciated yen. Therefore, this emI’.hasises the fact that the position is a political one before if is'-a commercial one. If the people of New Zealand want more unemployment and lower standards of living then let the present influx continue. “YVe understand that this mallei 1 is being seriously dis.bssed by the retailers and merchants throughout New Zealand, and the position is far worse (han 's generally realised. Reciprocal Trade. "YVlien people talk of reciprocal trade with Japan it is not generally ■ realised that there are oyer 80.000.000 acres of arable land in Manchuria and that they aim to have 27.000,000 enttle and 15.000.000 sheep there, and that Mam-hurian butter can reach, the London market nnd rhe Japanese market iu considerably less time than can New Zealand bi tter. YVe understand that Japan is now exporting dairy produce mid there is a duty on imported produce. Taking everything into account it must appear that Great Britain must remain our chief market, and it is therefore essential that steps should lie taken to see that we buy her manufactured goods, and that the workers who liny our produce are given the purchasing power to do so. This cannot be the ease while we allow unfair competition from other countries. To quote one example only—a rayon wo: km- in the United Kingdom receives as much for one hour's work as the Japanese worker receives for one day s work. It is the United Kingdom worker who buys our produce; "YVe. the United Kingdom Mauufac-U’l-ers ami New Zealand Representatives' Association, hope that the whole position will be tackled at an early date by the proper authorities.”