JAPANESE TRADE PLAN

New Zealand Herald, Volume LXXI, Issue 21698, 13 January 1934, Page 14

JAPANESE TRADE PLAN

SOUTH AMERICAN LINK PROPOSED CORPORATION AID FROM GOVERNMENT ' € [FROM OUR OWN CORRESPONDENT] - TOKIO, Nov. 30 . Tho Japanese Minister of Commerce and Industry, Baron has decided formation of a strong corporation to bo called the Central and South American Trading Company, to do what tho name implies—promoto Japan's commerce with tho Latin Amorican countries.

This project is fully in line with the determination of tho Japanese Government and manufacturers to get a larger share of the South American trado—a determination that has become pronounced since the outcry in India and other countries of tho British Empire against the flooding of their markets with vast quantities of Japaneso goods at prices so cheap that competition with them became impossible. Baron Nakajima, unlike some other Japanese Ministers of State, who* aro moro concerned with politics, is thoroughly conversant with, and works hard concerning tho affairs within tho jurisdiction of .his office. He is particularly enthusiastic about plans to expend trade with South America. Japanese traders and others interested in Latin American commerce aro members of tho committee, and it is expected that the Commerce and Industry Minister's project will meet with their approval and co-operation.

The object of founding the new corporation, exclusively concerning Latin American business, is to induco modification of exchange control and import restrictions in those countries. For this purpose a "trade society," such as that proposed for Japan-Egyptian trade, with the object of obtaining alleviation of the Egyptian import tariffs, is notregarded as sufficiently competent. Features of the Scheme The main features of the proposed ncfr corporation arc:— 1. The corporation is to be founded with joint investment by private trading interests. The Government of Japan will, with the approval of the Imperial Diet, invest the corporation with authority to monopolise commerce between Japan and Central and South America.

2. The Japanese Government will endeavour to aid tho corporation in concluding special agreements with trading concerns in Central and South America for commercial transactions.

3. The Japanese Government is prepared to enter into a trade convention of somo sort with Central and South American Governments to modify exchange control and import restrictions, in favour of Japanese exporters. In accord with such conventions, preferred rights will bo given to commodities handled by the corporation. Trade on the Barter System

Several important Japanese trado commissions are now in or on tho way to various Latin American countries, with tho view to expanding trade, especially under what is now becoming popular in Japan as the "barter system"—that is, Japaneso industrialists aro willing to buy South American raw wopl, raw cotton, meat, wheat and other products, if those countries will take Japan's manufactured goods, especially cotton and rayon textiles. Japanese shipbuilders, however, drew tho line at building warships for Brazil for half-payment in coffee 1