TRADE WITH JAPAN.

New Zealand Herald, Volume LXVII, Issue 20596, 21 June 1930, Page 13

TRADE WITH JAPAN.

PROPOSED SHIPPING SERViCE

THE JAPANESE VIEWPOINT, DOMINION GOODS WANTED. . Plans for fostering trade between New Zealand and Japan were discussed at a •. meeting of Auckland merchants held at the Chamber of Commerce yesterday. The meeting was addressed by Mr. J. Watanabe, Australian representative pf the Japanese shipping firm Osaka Shosen Kaisha, who has just concluded a tour of New Zealand. The purpose of his visit was to ascertain the prospects for tho extension of his company's supercargo steamship service from Australia to New Zealand ports. He made it clear in his address that some modification of the Dominion tariff on Japanese goods would be necessary before the service could be developed as proposed. The opinion was expressed at the meeting that a service from Kobe direct to Auckland would be much more desirable than an extension of the present Australian service. Mr. M. Stewart, president of the Chamber of Commerce, presided and among those present were Mr. G. Finn, president of the Manufacturers' Association, Mr. A. B. Roberton, Japanese Consul,- Mr. E. W. J. Bowden, district officer of the De* Mr. R. Millar, manager of Messrs. A. G. Frankham, Ltd. Quid Pro Quo Desired. Mr. Watanabe said his company was not inclined to pioneer an extension of its Australian service to New Zealand without being assured of an inducing, reciprocal quid pro quo. It would certainly expect the New Zealand Government to extend to Japan at least the benefits to be derived from a revised preferential : customs tariff, thereby encouraging trading relations with Japan. "I desire to stress particularly this point," he said, "as it will be evident to anyone associated with shipping interests that a service such as is in contemplation could not be maintained in its initial stages without some modification in a tariff such as is now operating." The Osaka Shosen Kaisha had available, if a satisfactory agreement could be arrived at, a fleet of modern Diesel engine steamers fitted with refrigerating space, capable of moving expeditiously and safely several hundred tons per sailing of meat, butter, cheese and similar commodities, for which there was a large and increasing demand in the Far East-. "I am told," said Mr. Watanabe, "but I will not vouch for the accuracy of the statement, that your meat and butter are exported to a certain country from which it is transhipped to Japan without any identification of its true origin. Scope lor Expansion. "I have not the slightest doubt that the benefits of a direct steamship service from and to the Far East will result in a very great expansion of New Zealand's exports, for this country is in a position to supply, almost without limit, < what modern China and Japan's millions of inhabitants require in the way o! edibles such as I have referred to. Your wool, which is very favourably regarded in Japan, would certainly be taken in much larger quantities than at present if the damage and loss by double handling in Australia could be avoided. This in itself is a very considerable handicap, as also is the delay at transhipping points, which adds to the cost of insurance. "Under prevailing conditions, therefore, Japan prefers to buy in Australia, where our steamers take in the season not less than 430,000 bales against the 20,000-pur-chased in New Zealand. Therein you have the value of a direct service mad?, self-evident. Tallow, too, now bought exclusively in Australia, would doubtless show a much increased export, for Japan is a heavy buyer of this commo.ditj. Your wool is highly thought of in my country, but for reasons I have referred to its cost under prevailing conditions is too high when freight, insurance and incidental charges are figured in, for us to take more than we are doing. Famous Blankets and Rugs. . "There is no reason, provided your prices are right, why every Japanese soldier, sailor and civilian should not comfortably sleep under your world-famous blankets. At present, however, I do not, know of anyone using these articles or your equally famous rugs in the countiy to which I belong. "I could indefinitely extend the list of our diversified requirements which you could supply, but I believe what I have referred to "will suffice to show you that there is particular merit from your own. standpoint in offering you, admittedly provisionally, a steamship service which will eliminate loss of time, remove the factor of delay bv strikes and lock-outs at intermediate ports, the very considerable expenses of transhipment with its incidental insurance and financing cost, pilferage <>t goods while awaiting forwarding to destination, and last, but not least, indemnity ; against damage and loss to cargo from New Zealand occasioned by double handling." Saving by Direct Service. Figures quoted by Mr. Stewart, who said the Chamber of Commerce was keenly interested in extending New Zealand's export trade with Japan, showed that tho Dominion's imports from Japan increased from £582,000 in 1926 to £625,000 in 1929, and the exports to Japan increased from £162,000 to £428,000 in the same, period. The principal items among the imports from Japan are onions, silk and cotton apparel, timber, fancy goods and toys, but glassware, celluloid goods, buttons, paper and bamboo ware, walnuts, peanuts, seagrass ware and brassware also come in in considerable quantities. Mr. Stewart pointed out that at present goods coming from Japan to the Dominion had to pay two freights, one from Japan to Australia, and the other from Australia to New Zealand. In addition there was a transhipment charge at Sydney. The freight from Japan to Australia was £2 5s a ton, that from Sydney to New Zealand was £1 16s, while the transhipment charge was 12s 6d. This made a total of almost £5. If there was a direct service the whole charge would be under £3 - » Mr. Roberton stated that Britain had a most-favoured-nation clause in its tariffs with Japan, and there was an agreement by which the Dominions could take advantage of this if they so desired. By this means a revision of the tariff between New Zealand and Japan might be obtained. , - A vote of thanks was accorded Mr. Watanabe for his address.