TRADE WITH JAPAN

Evening Post, Volume CXVIII, Issue 17, 20 July 1934, Page 8

TRADE WITH JAPAN

NEED FOR CAUTION

NO SPECIAL TREATMENT

BETTER TO NEGOTIATE

A note of caution in reference to future trade relationships with .Japan -\va.s sounded by the Minister of Customs (the Bt. Hon. J. G. Coates), when concluding the debate on the Customs Tariff Commission's report in the House of Bepresentatives yesterday afternoon. He said he did not think it would be wise to select Japan for special treatment, as had been suggested in some quarters. Some members, said Mr. Coates, had gone so far as to suggest that Japan should be selected for special treatment in the tariff proposals that would shortly be considered by Parliament. In his opinion such a course would be definitely unwise.. It bad not been New Zealand's custom, to select any country for special treatment 'in the tariff, except in the matter of dumping. ... : ..-.. ■ ■ ... ■.-•-.•- Mr. E. J. Howard (Labour, Christcliurch South): Japan, is dumping. Mr..Coates: Not necessarily; it is a question of interpretation. Mr. Howard: She subsidises exports. Mr. Coates: So far as trade with Japan is concerned, by far the wiser and more satisfactory course to follow would be to carry out private negotiations with that country in an endeavour to see how far it is possible to meet Japanese requirements. Mr. A^ S. Eichards (Labour, Eoskill): Is,the Government doing that at present? . ,- . ' Mr. Coates:. We can't carry put any negotiations with any country until we fix aur tariff schedules. It doesn't- apply to Japan alone. There are many items in the general tariff which are definitely due for reduction and should be reduced. As, is pointed' out in the Commission's report, it is felt that we should leave the general tariff almost undisturbed so that we may have bargaining points when it is necessary for New Zeala.rid, to find for her exportable' products. It is felt that we can best serve the interests of the country by . making, where possible, trade agreements as between foreign countries and ourselves. There are those who do not agree that it is possible for New Zealand to enter into special trade agreements. We think it is. Mr. Coates said that there was ample room for satisfactory negotiations, but it was ,not always 'easy to bring the changes into effect, as before many months elapsed after the making of agreements different problems arose. So far as Japan was there were many people in New Zealand who had very grateful recollections of that country. ' : ■'* Not many years ago Japan provided New Zealand with protection that was much needed at that time, and the people of New Zealand remembered that. He thought that the people' of New Zealand would like to be on the very best possible terms with Japan. \ For that reason he.thought it would be very unwise, as had been suggested in one or two quarters, to select Japan for special treatment in the matter of tariffs. The Leador of the Opposition had expressed keen concern, about imports from Japan, but he had not made itquito clear what he really meant.: . The Leader of the Opposition (Mr. M. J. Savage): I said quite definitely that we should have control.over imports as well: as, exports. Mr. Coates: That means quantitative regulation and the embargo^ Once you get into that sort of policy you are going to put the traders of this country into all sorts of difficulties. They would not know where they were. . Mr: Savage: Do they know now? Mr; Coates: Ob, I think they do. After quoting the import figures from Japan, Mr. Coates said they,were nol alarming. Imports from Japan to New Zealand in 1033 were valued ai £541,346, in 1932 at £434,746, in 193] at £304,532, in 1930 at £565,264, am in 1929 at £625,714. Nevertheless, the quantity of goods received for tin money expended did definitely have ai effect on wages and costs in New Zea land. He believed they should in th< meantime work towards trade agro ment. , . ■"■■: ■.