METAL FOR JAPAN

Grey River Argus, 13 August 1937, Page 2

METAL FOR JAPAN

Supplies from Australia IMPORTANT NEGOTIATIONS. Important negotiations between Australian iron ore companies and Japanese steel companies for the shipment of large quantities of Australian ore to Japan are approaching completion, according to Mr N. Umeda, representative of Niss Company, Ltd., of Kobe (says the “Dominion”). Mr Umeda is on his way to Sydney, where an agreement may be signed within the next few weeks. It was he who first directed the attention of Japanese interests to the possibilities of the Yampi Sound deposits. It is understood that powerful Australian steel interests have been in negotiation with Japanese interests through Mr Umeda, on the basis that iron ore deposits on the eastern coast of Australia, north of Brisbane, should be worked by Australian capital, and that the Japanese should contract to take a fixed tonnage of ore annually. Subsidiary to the export of ore would be the shipment of cattle to Japan from Northern Australia. Shipping facilities have already been raranged, according to Mr Umeda. “There seems to be a lot of misunderstanding about iron ore and Japan in Australia,” said Mr Umeda. “It is merely a question of trade, not of peaceful penetration of Australia by Japanese interests. We want your ore, and are prepared to contract for a definite quantity every year. No doubt arises in the people’s mind about Japan buying wool, or wheat, but as soon as iron ore is mentioned there is a certain amount of suspicion. Why, I do not know. “Another strange feature,” he continued, “is that it does not seem to be realised that Japan is becoming a beef-eating country, and that cattle exported from the north, whence they have no other market, could find a ready market in Japan if iron ore is shipped. Cattle could be carried .m decks and ’tween decks, and it has

been proved that on the long voyage to Japan they maintain their condition well.” Mr Umeda said that in a few years Japan’s iron consumption would be about 6,000,000 tons annually. He expected that Australia would supply half of Japan’s requirements. At present, Australia exported roughly 200,000 tons of iron ore to Japan, mostly from South Australia.