JAPAN AND NEW ZEALAND

Otago Daily Times, Issue 16590, 13 January 1916, Page 6

JAPAN AND NEW ZEALAND

GROWTH OF TRADE BETTER COMMUNICATION • DEMANDED. There has been a great doal written and said during recent months regarding tho extension of trade between Japan and Australia and New Zealand, and tho growth of Japan's exports to these countries, and a corresponding increase of the imports to Japan from Australasia, are material proofs of tfio realisation of expectations in this direction (states the Commercial Supplement of the Japan Times). Those merchants and manufacturers in Japan who have sought a sbaro of the trade to Australasia during recent months are expressing themselves as amazed at the largo market which offers itself in the south, and confess that they little realised the large purchasing power of tho people of theso two British dominions. It has been pointed out on many occasions that this growth of trade —an asset to Japan which is only just being realised by the commercial community—is not a temporary outcome of the war, but can be, and will be, if tho Japanese commercial men take care, a permanent addition to Japan's commerce. Now that the increase has set in. . and bids fair to become a standing asset to this country, there are many ways in which improvements can be affccted in tho relations between the thro-'; countries concerned. And, in considering such improvements, the necessity for better shipping facilities looms up as the most important factor to tho interchange in commerce between Japan and tho South Seas In fostering the commercial relations, it will bo admitted that much can be done on tho Japanese side. It is to be feared that the leaders in the mercantile marine of this country aro not adopting what can bo exactly termed a far-seeking polioy in tho part they the playing towards the Australasian trade; and, although they havo come to see that Australasia has a groat purchasing capacity as a market, thev ro slow to move in backI ing up the efforts of the manufacturers, who aro putting forth an earnest endeavour in the capture of the new markets. The greatest drawback to tho Australasian trade at the present timo, as far as shipping is concerned, is the poor communication between Japan and Now Zealand —the latter itself a market which the Japanese admit to be of great value to them. New Zealand, of course, is a small country, and has a small population—just over one million. But in considering tho advisability of establishing direct steamer connection with New Zealand, Japanesese shipowners must not bo blinded by tho paucity of population. Japan, of almost identical size m area as New Zealand, has over 60 millions of people, but when purchasing power is considered, New Zealand's one million becomes equal to 10 or 12 millions, and Australia's four millions to 30 millions. In short, theso two countries are comparatively richer than any others in the world. It will be admitted that since tho war began, and since Japan has performed her part in tho Entente so admirably, relations with the British dominions havo been of tho most cordial nature. Where prejudices existed before, expressions of heartfelt cordiality and friendship aro now found. To take advantage of these conditions, the Japanese shipowners must bestir Again and again it has been urged upon them that their ships must pioneer new markets, and not wait for Rupply and demand to make their presence in fresh waters a necessity. At the present time, all goods bouglht by New Zealand importers from Japan aro shipped by tho s: earners which ran from Japanese ports to Sydney and Melbourne. At either one of the latter ports they have to be transhipped to steamers belonging to the Union Steam Ship Company of New Zealand, or to tho Huddart Parker line, and aro then carried across the 1500 miles of tho Tasman Sta to New Zealand ports. What does this transhipment mean? It means, with tho high rates charged by the Union Steam Ship Company (which has a monopoly of the Australia-New Zealand traffic), that the Japanese goods reach a very high price before they can lie got to tho consumers in New Zealand. It means, too, the most annoying delays in delivery, for there have been instances of Japanese goods destined for New .Zealand, lying on tho wharves in Sydney for six weeks and two months before transhipment was effected. Goods which in the ordinary course should have reached New Zealand in five weeks liavo taken nearly three months. Such delays are ii.tolerable to tho business communities of both countries. Neither is it fair that, through the transhipments and delays, tho manufacturers in Japan should have to bo content with high selling prices for their goods in New Zealand, and a consequent inability in some cases of competing with other countries. Tho remedy is on the whole an easy matter. The Nippon Yusen Kaisha have three boats on the Australian run", tho terminal ports of which are Sydney and Melbourne. With one additional ship on the lino, the company could send a ship across to New Zealand from the Australian ports once a month, and almost totally abolish the anomalies which now exist. The public does not know whether there exists any arrangement between tho Nippon Yusen Kaisha and the Union Steam Ship Company whereby the former cannot run its ships across to New Zealand, but if there ir. any such agreement it appears on the surface that it would be an excellent thing for. Japan's trade generally if the Japanese company broke it off and went about its business in Australasian waters independently. Such an action, let the company be assured, would have' the whole-hearted support of both New Zealand and Australia. The establishment of a monthly service to New Zealand, via Australian ports, would bo a great asset to Japan's trade, for tho very presence of a regular service of Japanese steamers in New Zealand waters would greatly stimulate the trade between the two countries. It is a well-known fact that in the past the obstacle to the service suggested has been the question of securing return cargoes. But Japan is utilising wool, tallow, and minerals to a much greater extent than hitherto, and exports .from New Zealand to Japan would increase probably threefold were the service established. Japanese manufacturers are at. the present time calling out for wool and other raw products not only for war purposes, but, for the manufacture o: articles of everyday use. The negative quantity in the return cargo argument, it can safely bo said, has been destroyed. If the service were once set going tho backward cargoes would very soon grow to payable proportions. The Japanese Government, it is understood, has hitherto refused to subsidise a New Zealand service, but this fact should not deter some enterprising shipowners from trying out the now line. There exists in New Zealand a group of tho most influential business men ready to financially assist any proposals made towards the establishment of a Japan-Now Zealand line; their assistance would most probably take tho form of a guarantee on backward cargoes. It seems a pity, therefore, that tho trade between Janan' and New Zealand should not receive the stimulus that is required in better shipping facilities, for it is a trade which would become in a very few years a great, asset to Japan's commercial activities, and which would equally benefit Now Zealand.