JAPAN IN SOUTH AMERICA

Dominion, Volume 31, Issue 72, 18 December 1937, Page 18

JAPAN IN SOUTH AMERICA

Increased Trade ARGENTINE AND CHILE ESPECIALLY If Japan continues her present rate of progress, trading figures, at the end of this year will reveal that once again she has become a serious competitor for the South American cotton textile market, says the “Christian Science Monitor.” In Argentina and Chile, especially, Japanese imports have shown a steady increase, and preliminary estimates agree that the showing for the total market south of Panama may be considerably better than 1933, when the strength of Japanese competition was first brought home in spectacular form, to the United States, Great Britain and Germany—and to national manufacturers themselves. In Argentina, British importers believe Japan has developed into a more serious competitor than Italy, who, it had been feared, would concentrate considerable attention on this market after the sanctions episode. Italian competition has iuereased, but it. has not been so vigorous as expected. Japau, however, has encouraged more

buying from Argentina of raw materials on the assumption, which has proved correct, that she would be able to make more sales. The visit of another commercial mission has been announced, and it is believed that an effort will be made to obtain exchange concessions, in which case competition will be intensified. The balance of trade continues .in Argentina’s favour. Increased buying seems to be the guiding principle of Japanese commercial policy throughout the southern market, in the hope of finally extinguishing the furore created by previous dumping, but, as the balance of trade continues to improve in favour of .South America, it cannot be expected that Japan will remain passive. Facilities for more exports are bound to be demanded. The development of ChileanJapanese trade is reflected in the recent return of a special economic mission to Tokio, composed of prominent Chilean industrialists and financiers. The results of this are already seen in the commencement of a Chilean study of proposed reduction in duties on certain classes of cotton fabrics in which Japan is interested. A similar study is being made with a view to benefiting Japanese natural silk imports.

Japanese policy toward Chile has been similar to that followed in Argentina—extension of purchases. The Chilean trade mission obtained a promise of increased Japanese purchases of minerals, such as nitrate, lead, manganese, asbestos, kieselguhr and borax. An effort is also to be made to associate Japanese and Chilean capital in the exploitation of iron mines and the smelting of iron and copper in Chile.