DUMPING CHARGE

Evening Post, Volume CXVI, Issue 23, 27 July 1933, Page 14

DUMPING CHARGE

JAPANESE TRADE

AUSTRALIAN PROBLEM

(From "The Post's" Representative.) SYDNEY, July 10.

It is apparent that in dealing with the problem of Japanese competition the Federal Government is faced -with considerable difficulty. Above nil, Australia is anxious to retain its friendly relations •with the Japanese, who in recent years have become excellent customers, particularly for wool, wheat, and flour. It is pointed out that Japanese bidding has had a great deal of influence in causing wool prices to rise, and if anything is done to offend that country her buyers might look elsewhere. At the same time it is suggested that Japan would not be able to secure, the quality is desires from South. Africa or anywhere else. However, in official quarters it "is felt that it would not be advisable to take any risks. For that, reason a hasty decision is not likely, nor is it probable that any decision will be reached without consultation with Britain.

, British firms trading in Australia are greatly concerned at the nature of the competition they have to meet from Japanese firms. For British firms the position ia becoming more acute every day, but they are the first to realise the difficulties of. the Government. Official figures show that for the nine months e£ded March 31 Australian imports from Japan increased by £949,643. The principal items in which there were increases \vere:—-Apparel, textiles, and manufactured fibres (mainly silk), from £1,260,700 to £1,836,270; drugs, chemicals, and fertilisers, from £25,516 to £91,052; metals and machinery, from £23,372 to £01,030; earthenware and crockery, from £71,000 to £125,000. The favourable trade balance with Japan for the nine months was £4.678,000, a decrease of £989,400. The Government is likely to be most Concerned .with the charge that Japanese goods' are being dumped into Australia. If a case is made out-in that, connection the Government has the machinery to deal with it, and is not likely to hesitate. Action on these lines, it is held, could be taken; without: fear of giving, offence,: for no country is likely to protest very strongly if unfair tactics are proved against it. However, the Cabinet has decided to discuss the position with the-British Government, which has'also.-.expressed some concern at the allegations .' of Japanese dumping; Britain ,is already discussing the matter with Japan, and the Australian Resident Minister in Britain (Mr. Bruce) will be asked to ascertain the principles underlying/these discussions. ;■ Meanwhile Australia is making an exhaustive analysis of import figures to ascertain the extent to which Japanese imports are competing with Australian and British goods. The Tariff Board is inquiring ,into ' such matters, as rubber soles, slippers/ gum" and wading boots, cotton towels, enamel -ware, ■ crockery, jugs and teapots, electric lamps, wax crayons, men's braces and gaiters. According to the Minister of Customs, departmental inquiries have shown that the existing tariff generally has been .effective in preventing an abnormal influx of competitive Japanese goods. He emphasised that any action that might be taken by Australia would be directed only against unfair trading. The possibility of a. three-party agreement on trade matters between Australia, Great Britain, and Japan has also been discussed by the Federal Cabinet. bucli an agreement was suggested by Mr. R. F. Sanderson, chairman of the recent Australian Trade Delegation to the East. He said he hated to think of a. trade war with Japan, for he feared that it would eventually load to a real war. Australia could negotiate with Japan a .trade treaty under which she could maintain her exports in raw materials, -such as s.ilk, which Australia could never hope to produce, and in manufactured goods which Australia could not economically produce. Under the Ottawa Agreement, however, Australia was bound to give certain preferences to Britain. It would seem necessary, therefore, that Britain would have to be consulted in any trade, negotiations with Japan. . ■ . Mr. Sanderson said it was natural to assume that Japan was not desirous of continuing a trade war based on extremely low prices, for if her currency appreciated, as it inevitably must, and jf the education of the mass of the people Drought about a desire for a better and higher standard of living, her continuance of low prices in foreign markets could not lie easily maintained. Japan's ambition was to expand. By warlike penetration she had acquired immense tracts of country, and by peaceful penetration she had vast markets at' her command.