JAPANESE TRADE

New Zealand Herald, Volume LXX, Issue 21552, 25 July 1933, Page 10

JAPANESE TRADE

COMPETITION WITH BRITAIN CONCILIATORY ATTITUDE LONDON,. July 18 As the outcome of conversations between the British and Japanese Governments, the British policy in the forthcoming trade negotiations, it is understood, does not contemplate dras- / tic action against the Japanese in connection with trade competition. It is felt that such action would have grave repercussions on the question of naval disarmament, seriously affecting the Dominions. / ' The British Government lias inI formed Japan that Britain cannot speak for the Dominions in the negotiations, but will accept their representations, if desired. The British Government, in adopting ft conciliatory attitude, has not overlooked the increasing agitation through- " out the Empire against Japanese competition, which is admittedly serious, especially as the Japanese have a 50 to 100 per cent advantage over British /manufacturers, owing to the depreciation of the yen, a moderato inflationary policy, efficient financing of industry, and manufacturing machinery organisation. < For example, three hugo concerns i control the Japanese cotton trade representation in China, whereas 150 I British firms mutually compete. A factor inducing British moderation Ir that investigation disclosed no evidence to support charges that the Japanese were exploiting trade by unII fair competition, subsidies and sweated labour. . Imitation ol Trademarks On the contrary, Britain was satis- / fied that the Japanese low standard of living enabled low wages. Though these rose 40 per cent between 1926 and 1930, i internal prices remain unchanged. There is evidence that the Japanese unscrupulously imitate trademarks find evade patents, but otherwise, it . / is said, they are no more unfair than average traders. They subsidise exports, ' but not excessively compared with other nations. j Britain has considered two courses. The first was prohibitive tariffs against the Japanese by denouncing the 1911 trade treaty. The grave objections to • this were that the Japanese might retaliate in order to recoup their losses, thus increasing anti-British competition I and endangering Anglo-Japanese relaj tions. Secondly, Britain'could impose high Hut not prohibitive tariffs, which, if Sufficiently high to bo effective, would have all the faults of the first method. Voluntary Quotas Envisaged ! It was considered that either method toould cause Britain to lose more than she would gain. Accordingly, her ]jo I icy will envisage voluntary quotas j and the sharing of markets ■ Government representatives probably will accompany the industrial negotiators, but the agenda is indefinite. Britain will be influenced to meet / Japan half-way by a realisation that the balance of trade has been heavily / in favour of Britain and tho Dominions excepting from 1914 to 1924, sinco when the ratio has steadily fallen. / Japanese prices .may rise, owing to ' a 400,000,000 yen (£10,000,000 at par), internal loan to balance the Budget, plus .'i00,000,000 yen for the Manchurian / campaign, increasing tho internal debt by one-third.