JAPANESE COMPETITION

Otago Daily Times, Issue 22260, 12 May 1934, Page 15

JAPANESE COMPETITION

BUSINESS ON VIRGIN SOIL LOW COST OF PRODUCTION. (From Our Own Correspondent.) LONDON, March 29. Sir Harry M'Gowan, chairman of Imperial Chemical Industries, who recently visited Japan and China, in an address to the Conservative Private Members’ Committee at the House of Commons, said that serious though Japanese competition was at the moment he thought it would become much more intensive in the future. The Japanese had profited by the errors of industrialists in Great Britain and the United States, and by purchasing up-to-date machinery they were now ahead of these older countries in many trades. Whereas ( in Great Britain factories of their present size were evolutions from small units, the Japanese had started modern business on virgin soil. Other factors which made the competition formidable were their low standard of living, their longer working hours, and also the C 5 per cent, depreciation of the yen. On the face of it, these advantages were very great, and the only obvious hope was some appreciation in the value of the yen. He suggested that the most hopeful immediate remedy was a rapprochement between industrialists in Great Britain and their opposite numbers in Japan. The Japanese were disturbed at the prospects of arousing com'bined retaliatory action by the Western nations. Notwithstanding that Japan was not to-day self-supporting in many products, she was importing and exporting some of them. The obvious deduction was that she was endeavouring to seize certain export markets as against the day when she would have a surplus over home consumption. Although the Japanese possessed many advantages, there was much that -this country could do to catch up with them Many British industries needed reorganising, while there was equal necessity for a planned programme for industry generally over a period of years. .Also much could be done to lower manufacturing costs. Price and not quality was tbe acid test to-day. Sir Harry said that while he was in Japan he saw no signs of malnutrition or discontent among the native workers. Working ten hours a day both sexes seemed contented and of good physique. The imposition of any Government embargo would only serve to irritate the Japanese., and they might respond by overrunning British markets in the Fast. He welcomed the Indian arrangement ou cotton and cotton piece-goods as a practical step towards the control of Japanese competition. Referring to China, he said that despite their political disorganisation, the Chinese were determined to become industrialised. The industrial awakening of China would compel Britain to alter her attitude. In the past England supplied all the capital and made it a principle to keep to herself all the profit made out of Chinese business. He thought Chinese capital should be allowed to contribute towards the foundation of new industries in China, and he was sure that in future the Chinese would demand a share of Ihe profit made in the industries established in their own country.