The Evening Star. TUESDAY, AUGUST 11, 1936. JAPANESE-AUSTRALIAN TRADE.

Evening Star, Issue 22414, 11 August 1936, Page 8

The Evening Star. TUESDAY, AUGUST 11, 1936. JAPANESE-AUSTRALIAN TRADE.

Advice is given to New Zealand exporters by tbe Minister of Customs in the matter of the despatch of goods to Japan. This arises from an ordinance promulgated in Tokio putting a prohibition or a heavy surtax on Australian wheat, wool, and other commodities. Mr Nash’s statement is intended to impress on shippers from the Dominion the importance of having their exports accompanied by certificates of their origin. Last year Australia sent a goodwill commissioner to Japan, and almost immediately afterwards Japan returned the compliment. It was pointed out at the time that the official visits had nothing to do with trade. But the Commonwealth’s demonstration of goodwill accentuated Japan’s disappointment with the Australian tariff changes announced at the end of May. Japanese goods—textiles, crockery, fancy articles, and a wide range of other manufactures —had been steadily supplanting British imports in the Australian market. The growth was remarkable. Japanese fabrics had been landed at less than fivepence per yard, compared with fourteen pence in the case of English fabrics. The new Commonwealth tariff imposed additional duties on foreign textiles in favour of those produced in Britain and Australia. Japan immediately threatened that if these duties were maintained she would impose restrictions on Australian wool and wheat, which she had imported to at least twice the value of the Japanese manufactures bought by Australia. The Commonwealth Government offered to grant Japan certain special concessions, and also sought a trade treaty by friendly negotiation. Japan was adamant, demanding that the conditions prevailing before the tariff changes were made be restored. The reply to this attitude was a statement that the new tariff was in accord with Australia’s protective and Imperial preference policy, and. must stand. Japan then put into effect a

restrictive ordinance, strictly controlling foreign trade, to remain in force for twelve months.

In the course of a statement, the Federal Prime Minister remarked that it was inevitable that Japanese competition, unless arrested immediately, would very soon menace every Australian industry with which Japanese manufactures were competitive. Mr Lyons contended that the right of a nation to make tariff changes was absolute, yet in effect the Tokio authorities attempted to limit Australia’s tariff-making powers. Following up the lead of their Government, the Japanese buyers absented themselves from the wool sales in the Commonwealth; but it was pointed out that the textile manufacturers in Japan were probably stocked well ahead of current requirements and could afford to hold off, awaiting political developments. The shipments of wool from Australia to Japan for eleven months of the 1935-36 season amounted to 765,469 bales. Naturally enough, the Commonwealth producers were perturbed about the future, but it was regarded as being against all reason to suppose that such a market could be irretrievably lost. At present wool is not in over-supply in the world, and if Japan gets her requirements from outside Australia there will be opportunities for the latter country elsewhere. As has been the case with Germany and Italy, there has been much talk in Japanese circles of the wonderful development of artificial fibres to take the place of wool. They have their value, undoubtedly, but no one would willingly buy any of the numerous substitutes on the market if ho could conveniently purchase pure woollen goods. But there are vital principles at stake in this matter that transcend in importance the loss of Japanese market facilities. First, a sovereign nation cannot permit a foreign country to dictate its policy; and, secondly, it is imperative in the interests of the primary producers that a substantial volume of British trade with Australia should not be destroyed. A recent visitor to the Far East said the mentality of the Japanese makes it difficult for them to see any side but their own. That, in part, at any rate, accounts for their rigidity in the matter of the Australian tariff changes.