TRADE WITH JAPAN

Putaruru Press, Volume XXI, Issue 1234, 12 June 1947, Page 6

TRADE WITH JAPAN

PRIVATE ENTERPRISE RESUMED American Aims Outlined The United States Department of State aims at July 15th as the date on which foreigners may resume private trading with tlie Japanese. Discussing this, the New York Times early this month said that; if present plans matured, Afneriean and other businessmen would be permitted after that date to visit Japan in limited numbers and establish direct contact with Japanese manufacturers. All Japanese exports are handled now by tlie United States Commercial Company, a subsidiary of tlie Reconstruction Finance. Corporation, which brings them to this country, where they are sold either at auction or ou a sealed bid basis. Tlie plan provides tbat private businessmen of foreign countries may go to Japan, under a quota system because of limited living accommodation, to contract directly with Japan-

ese manufacturers for their products. However, there would be no price discussions between them.

The Japanese State Trading Corporation would pay the Japanese manufacturer in yen for whatever goods tlie, foreigner selected, tlie. yen price being based on cost of production plus a nominal profit.

Tlie goods would then be shipped to tlie foreign buyer, wlio would pay for them by remitting to the Supreme Allied Command’s export account in dollars, sterling or other currency based on a fair world market value. The dollars or other currency would be held in the export account to pay for additional raw material imports for the Japanese manufacturersWhile this system would avoid the necessity for establishing a foreign commercial exchange rate for the yen it would in effect provide some basis for determining such a rate when Allied officials believe the time is ripe to set it.

Officials say the major difficulty in getting the plan into operation by Jwly 15tli lies in the acute housing shortage in Japan. A combined mission from Washington, which will

complete arrangements for the plan, will also work with General MacArthur’s experts on the possibility of allowing American and other foreign businessmen to finance Japanese manufacturers by providing them with heeded raw materials.