JAPAN’S TRADE OFFER

Otago Daily Times, Issue 23859, 13 July 1939, Page 13

JAPAN’S TRADE OFFER

AUSTRALIAN TREATY SUBSTITUTE WOOL BUYING AND PIECE GOODS (From Our Own Correspondent) SYDNEY, June 30. The trade treaty between Australia and Japan expired to-day and will not be renewed, but Japan has voluntarily undertaken to allot to Australia twothirds of the total quantity of sheep’s wool imported into Japan from foreign countries and to limit her exports to Australia of cotton, rayon, and staple fibre piece goods. The Japanese Government does not require any reciprocal undertakings by Australia. The Consul-general for Japan, Mr M. Akiyama, informed the Australian Minister for Trade and Customs, Mr J. N. Lawson, that the Japanese Government, because of the pressure of political and economic conditions in Japan, was unable to bind itself to issue permits for the importation of a definite quantity of Australian wool. The proportion of total importations now offered was the same as that guaranteed to Australia under the expiring trade agreement. The control over the export to Australia of piece goods would be the same as had been in force since January 1, 1937. The effect of the undertakings Is not binding on either country in respect to specific quantities of any commodity. Australia has not indicated any intention of curtailing textile imports below the quotas of the old agreement, but she is free to do so if circumstances develop to justify restrictions. It is not considered likely that Japan will be able to export textiles in quantities approaching the old quota. The Consul-general for Japan referred to the new arrangements as an “ understanding of confidence ” which would foster existing happy trade relations between the two countries. In the present economic conditions it was important, he said, that mutual confidence, rather than quota stipulations, should be emphasised. When this spirit of confidence was manifest, business men in both Australia and Japan would see that trade increased. Japan would never lose her confidence in Australia.

In the wool selling-season ending to-day Japan bought about 365,000 bales of wool in Australia. That is a small total compared with the days when the Japanese were buying as freely as British operators, but at least their buying has helped to keep the market here reasonably active. If the new season’s total approaches ■ that 365,000 bales, graziers will be thankful.