Quota For Jap Goods

Manawatu Times, Volume LIX, Issue 7459, 9 May 1934, Page 7

Quota For Jap Goods

Measures to Protect British Industries

MR RUNUBIAN EXPLAINS GOVERNMENT’S ATTITUDE

British Official Wireless. RUGBY, May 7. Measures to protect the British cotton and rayon industries against Japanese competition in the Home and colonial markets were announced in the House of Commons to-day by the President of the Board of Trade (Mr. Walter Runciman).

In a long statement Mr. Runciman recalled that after the textile representatives of the two countries had failed to reach an agreement tho whole position was under review between tho two Governments. On March 16 he handed the Japanese Ambassador a memorandum inquiring whether liisGovcrument had any proposals to make for dealing with the problem. On March 31 he received a reply in which the Japanese Government expressed a willingness to consider any further proposals which the British Government might make, but making no proposals of its own.

“The Government has considered the whole problem again very carefully in the light of this reply. It is already a year since the British Government drew the attention of the Japanese Government to the serious position arising from Japanese competition. It is of utmost importance that every effort should should be made to deal with a problem of this magnitude in the most appropriate way. Unfortunately there appeared to be nothing in the Japanese Governments Note of March 31 to suggest that an early agreement was to be expected. Although, therefore, the Government still holds the view that the problem which faces us is one which can only bo settled satisfactorily by cooperation of some form between Japan and ourselves, the British Government cannot allow a situation to develop in which negotiations are protractedl indefinitely without any immediate prospect of success, and during this time the Japanese, quite naturally from their point of view, arc continuously expanding their exports in our markets to the detriment of Lancashire, while our hands are tied.

No Unfriendly Spirit,

“Accordingly the Government has come to the conclusion that it would not be justified any longer in postponing, in the hope of agreement, such action as is open to it with a view to safeguarding British trade.

1 * j therefore informed the J apancse Ambassador last Thursday that in the circumstances the British Government was obliged to resume its liberty to take such action as it decided was necessary to safeguard our commercial interests. I assured nun—and I am confident tbe House will join me in this—that such steps as it was proposed to take would he taken in no unfriendly spirit. ’ ’

As regarded the Anglo-J'apaacsc Treaty Mr Eunciman said that he was satisfied the Government could, without denouncing it, take proper and sufficient measures to protect British commercial interests. He therefore saw no reason to terminate a Treaty which had regulated commercial relations between the two countries for over twenty years. As far as the United .Kingdom market was concerned the Government felt that it could no longer continue to suspend the review of the silk duties by the Import Duties Advisory Committee, which had now been asked to complete its report on these duties as quickly as possible. In the case of colonial markets the Secretary for the Colonies had been in consultation with the colonial Governments. The Governments of the colonies and protectorates for which such action would be appropriate would be asked to introduce import quotas which, except in the case of West Africa, would apply to all foreign imports of cotton and rayon goods. With a view to reinstating Britain in the position in those markets which she held before the present abnormal period it was intended that the basis for apportioning these quotas as between foreign countries should be as far as possible the average of their imports in the years .10271931. It was further proposed that necessary legislation in colonial' territories should be enacted with the least possible delay and that it should be so framed that, the actual quota regulation would be reckoned a s beginning retrospectively from to-day, May 7, so that no attempt at forestalling would be allowed to frustrate the policy and intentions of the measures under contemplation.

West African Case

In the most important of the West African colonics there wore treaty obligations which precluded a differentiation in favour of British goods. It was for this reason that a year ago notice was given to release the West African colonies from their obligations under the Anglo-Japanese Treaty and and action there would be limited to Japanese goods. Mr Eunciman added that while he had not dealt in this statement with ■the position of any goods other than cotton and rayon textiles," the Government was aware that Japanese competition was not limited to these goods and was considering in the case of each of the other industries involved what tariff action in colonial markets was called for. As regarded the homo market the matter would be dealt with by the ordinary procedure of the Import Duties Act. The Minister concluded by stating that the Government would at any time give careful consideration to any proposals the Japanese Government might make towards a solution by mutual agreement of the difficult problem. Such a .solution ought to bo possible where two Governments were, as

lie was sure they were, anxious to agree. Japanese Potatoes and Fruit NEW PROBLEM FOR INDIA. Received Tuesday, 8 p.m. CALCUTTA, May 8. Indian markets, already flooded with, cheap Japanese goods, are faced with another problem in the shape of Japanese potatoes and fruit which are brought from Japan by ships in ballast and sold considerably cheaper than Indian products. “Comparatively Small Effect,’’ Says Japan CALMER VIEW NOW TAKEN. Received Tuesday, 9.30 pan. TOKIO, May S. The Government and industrialists are generally taking a calmer view of the British restrictions on Japanese trade. Their study of Mr. Runciman's announcement of quotas discloses that they will have comparatively small effect on Japanese trade. The Dominions are not affected and there is an inclination to discount suggestions of the trade war mentioned in the London despatches. Lancashire Members of House Delighted HOPE THAT DOMINIONS WILL FOLLOW SUIT. Received Tuesday, 7 p.m. LONDON, May 8. The effect of Mr. Walter Runciman's | measures is a two-thirds reduction of Japan's cotton ami rayon exports to Colonial markets. Textile shares rose sharply following Mr. Runciman's announcement. Lancashire members of the House of Commons are delighted and hope that the Dominions will follow' suit and come to agreements on similar lines. Consulting Dominions DENIAL FROM CANADA. OTTAWA, May 7. The Premier (Mr. R. B. Bennett), in the House of Commons, replying to a question by Mr. Mackenzie King, said that he was not aware of any correspondence with t.hc United Kingdom regarding restriction of Japanese goods into Canada. The Press report stating that London had decided on a policy after consultation with the Dominions had been written by someone “with an entirely erroneous understanding.”