JAPAN AND QUOTAS

Otago Daily Times, Issue 22268, 22 May 1934, Page 4

JAPAN AND QUOTAS

THE LONDON POLICY EFFECT ON DOMINIONS On May 8, when Mr Runciman announced in'the House of Commons the new quota policy in Britain and the colonies to be applied to articles in which Japan competes, The Times remarked that it would be inappropriate to suggest any policy to the dominions. In the same issue as contained these statements, the Sydney Morning Herald's special representative in touch with the Commonwealth Cabinet stated:— " While the Federal Government is watching with the closest interest the trade difficulties which have arisen between Britain and Japan, it is not likely that there will be any discussion until the return of the Attorney-General (Mr Latham) of the suggestion made by, the President of tho British Board of Trade (Mr Runciman) that the Dominions might enter into similar arrangements to those made by Britain for the restriction of Japanese imports. ' . ,v Hitherto, in reply to allegations of the diiiiipirg of Japanese imports into Australia, the Federal Ministry has declared that upon the production of evidence of specific cases of dumping ot Japanese goods, it would be prepared to consider taking action under the Industries Preservation Act but that it was not prepared to consider general action against Japanese trade. The suggestion that quotas should be arranged raises entirely new problems, which will not be discussed by the Cabinet until it has had the benefit of Mr Latham's advice. .'■■',•-. "Officials consider that one result or Britain's policy will be to increase the pressure of Japanese imports on the Australian market. For many years the balance of trade between Australia and Japan has been heavily in favour of Australia. At present the value of Australian exports to Japan is about three times as great as the value of Australia s imports from Japan, although there has lately been an increase in the imports from Japan in proportion to exports. "It is not considered' likely that the British Government will formally ask the dominions to impose restrictions against Japan similar to those proposed in the colonies, but it is thought most probable that in the course of future trade negotiations Britain will seek concessions which could only be given at the expense of Japan's export trade to Australia.