TRADE WITH JAPAN

Evening Post, Volume CXX, Issue 116, 12 November 1935, Page 9

TRADE WITH JAPAN

AUSTRALIA'S PROGRESS

METALS AS A FACTOR

WHEAT AND WOOL EXPORTS

(From "The Post's" Representative.) SYDNEY, November 2. Simultaneous exhibitions of Australian manufactures in the principal cities of Japan, and of Japanese goods in Australia, which are now being held, are regarded in commercial circles as an enterprising development from which mutual and valuable trade benefits may be expected. The Department of Commerce, in a special reView of the possibilities of the Eastern tra"de expansion, following on recent interchanges of visits, emphasises the increasing growth of Australia's exports of primary products to Japan, the balance at present being largely in Australia's favour. Apart from' the predominating shipments of wool and wheat, a new field has been opened up in the export of metals, which jumped from £3217 in 1933-34 to £111,022 in 1934-35, mostly representing iron ore from South Australia. Formerly these supplies were drawn from China and British Malaya. The same tendency was reflected in increased zinc purchases, amounting to £42,000. During the last 35 years the annual value of trade between Australia and Japan has risen from £943.601 to £14.235,275. The highest point was reached in 1927-28, when Australia's imports from that country amounted to £4.282.614, and exports to £12,571,282. so that of a total trade of £16,853,896 there was a balance of £8,288,668 in favour of Australia. But the price of Australian products were much greater that year than they are now. THE WOOL OUTLOOK. Whereas Japan in 1900 was eighth on the list of buyers of Australian wool, she is now in second position (23 per cent.), the United Kingdom taking 37 per cent. "The favoured position in which Australia finds herself in regard to the wool trade of the world." says the Department's review, "is just a matter of congratulation, but a note of warning is sounded regarding the develoDment of substitutes. This movement, so far as Japan at least is concerned, will depend largely on the matter of prices. If prices of wool rise too high, the danger of substitutes is enhanced, but the increase in local consumption, ?nd the growing export market for Japanese woollen goods would appear to point to expansion rather than contraction of her purchases." Japan's milling industry has reached such a state of efficiency that her exports have attained a new high level. Australian wheat is being milled into flour and re-ext>orted. to countries where it comes into competition with Australian and other flour. Australian exports of wheat for 1934-35 showed a recovery to 15.630.335 bushels, and the Japanese have been very active in buyin? up the small remaining carry-over. "The: imposition of the additional 50 per cent, ad valorem duty on Canadian wheat; and the possibility of lower crops in other countries should." the Department considers, "guarantee the maintenance of Japanese purchases in Australia, particularly in view of the increased efforts tofe'e;xport?f.?and -4he growing home consumption." "The East, our natural market, .is at our back door, and it possesses tremendous possibilities of expansion." said the president of the Graziers' Association. Mr. J. P. Abbott. "The first sten towards the forecast that Japan will ultimately take 1,000.000 bales of wool each season from Australia, thus becoming our biggest wool customer, seems to have been tqkpn this seasonwhen an increase of 47.571 bales in Japan's tn+=l has taken nlace."