JAPANESE TRADE

Hawke's Bay Tribune, Volume XXIV, Issue 96, 6 April 1934, Page 8

JAPANESE TRADE

MUST FIND OUTLETS Exploiting Opportunities ORIENTAL VIEWPOINT In many of the world’s markets the competition of Japanese goods with home npanufactures has become one of the burning issues ot the day. Most countries have forcibly expressed their opinions of this “economic menace”, and some have even taken countermeasures by throwing up hasty tariff barriers. But what is the Japanese viewpoint? Has Japan a good cause tor her exploitation of trade opportunities? The answers to these and other important questions were given by Mr G. Okada, managing director of the Naigai Wata Company, who is the head of the Japanese Cotton Delegation negotiating with the British cotton industry. What he had to say is set forth in the February issue, “World Trade,” the official journal of the International Chamber of Commerce. Air Okada speaks with authority as a leading industrialist, for the company with which be is associated is a large one, operating no fewer than hall a million cotton spindles in Japan and China. Moreover, he has had 25 years’ experience of the cotton industry and other manufacturing enterprises. As he views the situation, international trade is absolutely vital for Japan, which, as he puts it. “has been forced to industrialise” to balance trade and cope with the population problem. Two fundamental and inescapable factors govern the position; a rapidly-growing population, and great poverty of natural resources. According to the census taken in 1931, the density of population in Japan proper was 171 per square kilometre, and 134 per square kilometre in Japan and her colonies taken together. And the total is going up by at least one million a. year. “Unfortunately,” said Mr Okada, “the natural resources we can fall back upon for the purpose of feeding, clothing, and housing this population are very poor. Our staple food wo can still supply from our own produce, although this, too may not always remain the case. But when it comes to clothing we aro more dependent on imports. It is true that we produce large quantities of silk, but cotton fabrics nre what clothe the bulk of our people, and we have to import every ounce of cotton.

IMPORTATION OF WOOL. “The use of woollen fabrics is also increasing every year. Here again, no wool is produced in Japan, and we import either finished woollen goods or raw wool for manufacture. For rayon, which is becoming increasingly popular, wo are largely dependent upon the foreign supply of pulp. Thus, for the first two of the three primary necessities of life —food and clothing—we cannot supply all our own needs out of our homo resources. “This is also true of tho third primary necessity, housing. Not enough timber is produced for all our building requirements, and as for iron and other materials used in modern buildings, which are increasing in number, a good deal of this has to be obtained from abroad. Apart from copper, our supply of Mineral resources is very poor. In addition, the coal supply is limited, and we are obliged to import large quantities of coal from Manchukuo and other countries. “We are, therefore, in this position; wo cannot balance our trade by the export of agricultural or mineral products only, having either no sufficient surplus or no stock at all to export, except silk and a few other articles. Nor can wo solve our population problem by emigration, owing to the existence of anti-immigration laws in almost all principal countries of the world. If a solution of this question could be found, it would certainly change somewhat the problem we have to face. But as things are, we are forced to increasing industrialisation, both in order to balance our trade by the export of manufactured goods, ’and in order to obtain the supplies needed to support our increasing population.” "SWEATING DENIED." The allegation that Japan is able to “sell cheap’’ because her labour is “sweated” is denied by Air Okada, who makes some interesting revelations concerning the industrial conditions in his country. Arguing that low prices are not necessarily unfair competitive prices “because they are economic and the manufacturers make a satisfactory margin of profit,” he asserts that Europe and America completely misunderstand the methods by .which they are made possible. "Sweating,” ho declares, no more exists in Japan than in any other civilised country. In the cotton industry, for example, working hours are limited by tho factory laws, and average no more than 8$ per shift. The cash wages paid are, of course, lower than those received by cotton hands in Europe and the United States, but tho whole system of remuneration is different, hi addition to cash wages, employees are provded with living quarters, dining rooms, hospitals, baths, and other amenities of life free of charge,, and their food provided by the mills costs only onehalf the regular prices, tho other half being borne by the employers. Then again, tho cost of living is relatively low in Japan, especially as regards food and clothing, and much general benefit is conferred by what is called the “family system.” “Thera is no group of industrialists in Japan ‘planning’ to menace other countries’ industries,” Mr Okada said. “We aro dependent on world trade, and we are, therefore, adherents of cooperation. That is one reason why we nre members of Iho International Chamber of Commerce. But, on the other hand, organisation and industrial efficiency are developed to a very high degree with us. We have installed the latest machinery—at. considerable capital cost —trained staff, established minute market research, etc.”