JAPANESE TRADE

Poverty Bay Herald, Volume LX, Issue 18205, 28 September 1933, Page 10

JAPANESE TRADE

THREAT TO AUSTRALIA • BARTER WITH ARGENTINA SHEEP-RAISING IN MANCHURIA . 1 LONDON, Sept. El. ! The foreign trade.push by Japan in evidently to be intensified, despite anything that may bo decided at the forthcoming conference at tjlimla (India), and Australia will be vitally concerned in developments by way of reprisal pgaiirsf India's denunciation of the trade agreement with Japan. Japanr,threatens to curtail her wool purchases from the Commonwealth and to embark on u barter programme with the Argentine. The Kanegufuchi Cotton Spinning Company will shortly open branches in the Argon tine for “the purpose, of selling cotton textiles, for which it will accept payment in “wool) and will, at the sumo time, adhpt its silk-spinning plant for the handling of -wool. Plans •• are being prepared bv the Kanegafiichi and Toya companies, which control nearly three-quarters of the Japanese spinning industry, for new wool and rayon mills, as well as for vast extensions of their cotton

—-—■ -*- dopartments. 'l'he development, of the wool textile trade by -lupau on a large scale is probable, and to this end a big Manchurian sheep-raising scheme will be financed, as, soon as possible. PAYMENT IN GOODS. The barter system will also be resorted .to by other undertakings, including Mitsui and Company, the wellknown general merchants and shipbuilders, who propose the formation of an Argentine company. The Japanese Government, simultaneously, will create a national institution, the function of which will he to balance South American imports ami exports, : with a view to obviating exchange ' handicaps. It is considered Unit the only way to expand sales with South America’ is to take payment in goods. As regards the scheme to establish the wool industry in Manclmkuo, it is stated in London that plans are complete, with the exception ol the problem .of finance. The present proposal is to form a society with a capital of -,000,000 yen, half to be found by the Treasuries of Japan and Manchukuo, 700,000 yen by private interests, and 300,000 yen by the South Manchurian railway. Nevertheless, this scheme to set up an unnecessary wool industry to compete with that for which' the Australian climate has proved its suitability, has yet to demonstrate its claims as a serious commercial proposition. SIMLA CONFERENCE. A hint of the Japanese attitude to lie adopted at the Simla conference has boon given by Mr. Tsuda, president of the Kanegafuchi Company, who re-

cently Stated that, the conference would decide the destiny of the cotton industry in Japan, and that Japanese spinners must, be ready to turn the conference to their own advantage. On the other hand, Mr. Okada, one of the 'delegation of Japanese industrialists now in England, says that .Britain and .Japan have been maintaining very dose and intimate connections bot.li politically and economically, and, if the proposed conference between British and Japanese cotton interests materialise, and can bring about some solution mutually agreeable, it will not only be of great benefit to the peoples • of the two countries, but will contribute greatly towards the peace and prosperity of the whole world. He evidently alluded to the discussions wividt are expected to take place in Britain on the return .of the British cotton delegation from Simla. The original arrangement was that a Japanese delegation should have an immediate meeting with British representatives of the cotton industry, but it; wns later decided that this conference should follow, if possible, tripartite conversations in India concerning the Indian market. DISCUSSIONS IN ENGLAND. Meanwhile the Japanese parry lias arrived here, and will tour Lancashire, where it will hold a preliminary discussion with a committee which lias been set. up for that purpose, under the 'chairmanship of Mr. John Grey. These proceedings, although informal, will certainly have an important bearing ,on any subsequent conference. The general opinion in London, how-

ever, is that Japan, with all her advantages, has discovered no weapon new to the armoury of trade, and will be compelled in the long run to abide by the rules that have always governed commerce throughout the world. INTERESTS OF THE EMPIRE. “If the worst must he .faced," states the Financial Times, it may become noecssary for the Empire to act. as a unit in defence of its trade interests until competitive conditions become' reasonable again. In the meantime it is not without significance that the Chancellor of the Exchequer, Mr. Neville Chamberlain, lias asked the Import Duties Advisory Committee to withhold its recommendations regarding silk, and rayon duties in view of the Anglo-Japanesc discussions. ”