Japan’s Financial Position Stated By Consul

Northern Advocate, 30 August 1938, Page 10

Japan’s Financial Position Stated By Consul

[Per Press Association. Copyright .] WELLINGTON, This Day. A reply was issued today by the Consul-General for Japan, Mr. K. Gunji, to statements in a Press Association cablegram from London that “Japanese finances are subject to an almost unbearable' strain,” and *that “the general belief is that a sharp deterioration in Japan’s economic position is likely in the near future.” “This is a great exaggeration,” Mr.. Gunji said. “We admit that Japan’s trade will be decreased this year in comparison with that of last year, but one must not omit the fact that the figures for 1937 reached the highest point since trade was opened with foreign countries. Export figures for the half year January to June, of 1936-37-38, to the nearest million yen, are 1218, 1528 and 1287 respectively.

“I venture to submit that almost every country’s trade will be decreased this year owing to the world-wide recession. The trade decrease of Japan by boycott is quite negligible taken in a general assessment. _ “The cable also mentioned that ‘Japan has lost from 50 to 60 per cent, of its gold reserves since the war in China began.’ Actual figures will show that the proportion mentioned greatly magnifies the amount of gold reserves exported. “It may be said that our gold reserves is less than at the time war started, but the major portion of that exported was due to our nearly established fund in foreign countries for the purpose of our import trade. Some foreign banks have refused to give credit to our merchants. The Japanese Government has taken appropriate measures by sending portion of its gold reserves to some important foreign cities. In the first half of the year. Japan has the usual unfavourable trade balance, but the contrary is the rule in the last half of the year, and ' this more than compensates for the unfavourable balance of the first half. So if we judge Japanese trade by the first half year’s figures, it will be

a miscalculation cr pure illusion, unjustified by past records.”