JAPAN'S PROGRESS

Evening Post, Volume CXXIII, Issue 142, 17 June 1937, Page 17

JAPAN'S PROGRESS

SYMPATHETIC SURVEY!

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PHILLIPS

Mr. L. V. Phillips, secretary to tha Lower Hutt Chamber of Commerce, who recently paid a visit to Japan, described to a gathering of members ot the chamber and business men some ot the factors behind Japan's industrial

progress. Japan's mergence and progress, said Mr. Phillips, as a first-class Power in the world arena of industry and international politics was one of the phenomena of the past century. Prior to tha Great War Japan had made a careful study of Western technique and machinery, and as a result half of the spindles of Lancashire had been thrown; into disuse and Switzerland was reported to be actually importing watc'.l parts of Japanese origin. Most travellers to that country sought answers to the following questions: —Was the cheapness of Japanese goods due entirely to low labour costs consequent upon sweated labour? Was some system of social credit or export bounty being employed by the Government for the purpose of assisting tha exporter? To what extent had the depreciated yen contributed to the posi« tion? How long was this rapid pro* gress likely to continue? REASON FOX SUPERIORITY. At this stage, by way of a preliminary statement Mr. Phillips pointert out that Japan's superiority was not due to an abundance of raw material!-,, which were few, nor to her capital resources, which had limitations, but t» the combined loyalties of the Japanese! people who had been welded into a. homogeneous form of society suitably adapted to the successful operation oS modern industry. He stated that Japan; needed a large export trade in order ti* support her people who were increasing at the rate of about 1,000,000 pen year, but that she was dependent upon, foreign countries for a large proportion of the raw materials used in her? manufactures. Deficient in the thrca important "raws" which were regarded as'the "sine qua non" of modern industry—iron, oil, and coal—and being forced to rely on other, countries to * smaller or larger degree for cotton, wool, nickel, antimony, lead, zinc, rubber, tin, flax, and. jute, Japan had faced difficulties which would havu daunted a people with less energy and resolve. By virtue of her control of the South Manchurian railway, Japan now had access to several iron and coal fields in Manchukuo. In other ways, however, Manchukuo had nod proved as successful as was anticipated, and had absorbed only about 180,000 ofi Japan's surplus population. The lower! standard of living of tHe Chinese occupants and the bandit influence, had been selected as causes to explain thi* comparatively small migration. : FINANCIAL DIFFICULTIES. From the point of national finances Japan was facing a difficult situation. Since the Great War, which incidentally assisted her to become a creditor? nation to the extent of 1,400,000,009 yen, the balance of trade had in tha main been heavily against her. A! study of state finances showed that her Budget Estimates had increased; from 1,602,000,000 yen in 1930 to 2,815,000,000 yen for the current fiscal period. Since 1930 the national debt had increased by nearly one billion; yen per year represented by the issue of "red-ink" bonds placed on the maiv kef to meet the deficits. Proceeding to deal with the factors behind Japan's progress, Mr..' Phillips said that it had been attested that the depreciation of the yen in 1931 was aii important factor in facilitating the capture of new and larger markets. Tha accompanying disadvantages of higherpriced imports and increased internal costs were small compared with tha advantage mentioned. As far as might be judged, industry, with the possible exception of shipbuilding, was not subsidised by the State. But in other ways, by co-operating with the industrial leaders, the Government had provided the machinery for the promotion, rationalisation, and control of industry, and had made possible greater effw ciency in the marketing of exports. THE LABOUR FACTOR. It was, however, the labour factor which was primarily responsible for the low-priced g-is, a factor sufficiently vital to compensate for the deficiencies mentioned. These human resources had been adapted and controlled to the requirements of industry in a manner not found in the West. Compared with our own labour conditions, wages were extremely low, hours were long, and conditions, particularly in smaller factories, left much to be desired. Yet it could not be stated that labour was "sweated." Not having a surfeit of wants, the people were able to live happily on a small income, and according to an authoritative report the industrial worker in Japan had more left over after providing tha necessaries of his existence than the Western worker. The cultural pursuits were closely followed by all, and as a nation of theatre-goers, art-lovers, book-scanners, and railway travellers, the Japanese were unequalled. Mr. PhiUips's conclusion was that as lons as the Japanese retained their traditional outlook upon life and continued to live and think as Japanese, their low-priced manufactured goods would continue to find their way into the world markets. The majority of these exported goods was produced in small factories where the methods used were neither mass nor modern. In every street was to be found the factory-in-the-home where factory legislation had no effect, and the working hours Were only limited by. the physical endurance of the workers. Such factories were reported to employ nearly 63 per cent, of the total industrial workers. In the heavy industries was found the up-to-date efficiency of modern mass-production methods, and in many of these factories the workers appeared to be well cared for. Visitors were usually shown the factory bathing quarters, auditoriums, dining-rooms, medical equipment, facilities for study, and the shrine for worship.. The profits of these establishments were usually well maintained.in spite of the low selling prices of the goods. INTEREST IN NEW ZEALAND. Mr. Phillips referred to the many courtesies extended to him by Japanese people, and stated that New Zealand appeared to be creating a good deal of favourable interest in that country. It was felt that the report of Ambassador Debuchi, Who had visited New Zealand in 1935 upon a good-will mission, had partly stimulated this interest. Evidences of this interssf were to be found in the proposals of the shipping companies with- vessels trading direct with New Zealand to add further units to the direct service, and in the proposal to improve the Consular facilities in this country. The increase in Japan's purchases of New Zealand wool during the past year, together with a corresponding expansion in the volume of Japanese imports to this country, were facts known to all, and it might be reasonably inferred that the evidences mentioned pointed to an even closer trading relationship between the two countries.

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