JAPANESE TRADE

New Zealand Herald, Volume LXX, Issue 21470, 19 April 1933, Page 7

JAPANESE TRADE

COMPLAINTS OF DUMPING EFFECT IN AUSTRALIA BIG INCREASE IN IMPORTS [from our own correspondent] SYDNEY, April 13 Allegations that Japanese manufacturers of cotton and artificial silk goods are actively pursuing a course of destructive dumping in order to capture foreign markets are contained in a statement issued by the Australian Association of British Manufacturers. It is stated that the rapidly developing competition from Japan is becoming a serious menace on the Australian market, and the latest reports indicate that the Japanese manufacturer is encroaching insidnously upon the province of the Australian manufacturer. A substantial increase in imports from Japan is revealed by the figures showing the imports for the six months ended December, 1032. During that ■ period imports wore £1,953,649, compared with £1,291,794 for the same period of 1931, an increase of 51 per cent. Exports, on the other hand, increased from £4,762,963 to £5,200,128, an increase of only 9 per cent.. It is pointed out that since August last year trade with the United King- | dom has been considerably dislocated j owing to the abnormal competition with I Japan. Tho influx of low-priced goods I has not been * confined to Australia, | but has been world-wide, and has been I rendered possible by the devaluation of ! the yen, although Japan, in addition, I has been compelled to build up foreign i credits in order to finance her war with j China. The opinion in Great Britain, I in fact, is that Japan has been preparing for the war with China for some time, and had to consider the possij bility of an economic boycott by the ' League of Nations. It was necessary for her to build up large foreign credits, and that could only be done by increasing considerably her foreign trade,. In Australia the effect of Japanese competition has been felt in the textile trade, and to a lesser extent in steel goods, fancy goods and pottery. Tho position in the textile industry is de- ■ scribed as particularly grave, and many English manufacturers find that in the Australian market, as in others, they cannot possibly meet the competition with Japan. Japan's cost of production is itself extremely low, owing to the low wages and the long hours worked by the operatives, and also owing to the fact that Japan has adopted all of the latest processes used in the textile industry. Representatives of British manufacturers, however, state that even with this low cost of production, Japanese prices in many cases are ridiculously low, and cannot cover the cost. Japan appears to bo following the example of Russia by building up markets without regard to profit. A further complaint is made by British manufacturers that the Japanese are copying designs in the most blatant fashion. In a number of cases, lines which have proved popular when manufactured in Britain have been slavishly followed by Japan and offered at prices which, at times, were less than half the cost of the British goods. It is generally inferred that Japanese manufacturers, with their different feeling for design and colour combination, could not produce patterns that would appeal to the Australian market. English designs in crockery have also been copied by the Japanese, and tho crockery is not branded with the country of origin. j CO-OPERATIVE TRADING POSITION IN ENGLAND HIGHER TAXES RECOMMENDED The report of the British Treasury Committee on Co-operative Societies and Income Tax contains recommendations which, if carried out by legislation, will* have the effect of putting these bodies on a similar footing with other trading concerns in the important matter of taxation, and of bringing in an appreciable extra amount to the National Exchequer. The principal recommendaton of tho committee is that co-operative soci«ties shall be liable to income tax in respect of all trading, whether with members or nom-members. The " divi," or discount on purchases, it is further recommended, should be treated as a trade expense. The Board of Inland Revenue in a statement to the committee estimated that, on tho. basis of the recommendation, £1,200,000 would have accrued to the Treasury in"tho year 1932-1933. Tho recommendations of the committeo will, it is understood, bo adopted by tho Government. Provision will be made accordingly in the Budget. Tho findings of tho committee wero communicated to the representatives of the co-operatives -by the Chancellor of the Exchequer, Mr. Neville Chamberlain recently. Mr. Chamberlain then invited tho co-operatives, voluntarily, to .submit to increased taxation, as was suggested some years ago by Mr. G. N. Barnes, one of the leaders of the movement. But the invitation was refused. Plans are now being made by the cooperatives to launch a campaign against the Government throughout tho country. STANDARD TRUST INVESTMENTS IMPROVE Speaking at the annual meeting of tho Standard Trust, Limited, in London, tho chairman, Mr. Alfred Shepherd, said the depreciation in the value of the company's investments during 1932 had been less severe than in 1930 and 1931. A more appreciation in Si,oek Exchange valuations of the company's investments did not entitle shareholders to assume that the rt-venuo position would immediately improve in tho same ratio. It would be some time before companies which bad to decrease or omit dividends would, even if there was an improvement in general conditions and trade, bo in a position to incroase their dividends, or, in cases where dividends had been omitted, to resumo them.