INDIA AND JAPAN

Southland Times, Issue 22215, 6 January 1934, Page 5

INDIA AND JAPAN

TRADE AGREEMENT

DECISION WELCOMED IN BRITAIN

BRIGHTER OUTLOOK

(British Official Wireless.)

(Rec. 5.5 p.m.) Rugby, January 4. Commenting on the Indo-Japanese trade agreement, the Manchester Guardian says the ending of haggling at New Delhi should have an immediate effect on the markets, encouraging buyers who have allowed stocks to run down and, through the lifting of the Japanese boycott on Indian cotton, improving the prospects of Indian agriculture;

The Times says the agreement will be welcomed in Britain as a triumph of common sense and patient commercial diplomacy which reflect the greatest credit on the principal.negotiatiors, Sir Joseph Bhore and Mr Sawada. The latter is deserving of special congratulations on the success with which he handled a particularly delicate mission. It is too early to predict with accuracy the ultimate repercussions upon Lancashire of the agreement, whose chief purpose is to protect the Indian cotton industry. Though incidentally it may help Lancashire somewhat by including a substantial quantity of cheap Japanese piece-goods, it is the Indian, rather than the Lancashire, millowner who is intended to be the principal beneficiary.

Prolonged Indo-Japanese trade negotiations at New Delhi ended with the acceptance by the Japanese of the Indian terms. Under the agreement India will grant Japan most favoured nation treatment, imposing no discriminatory tariff. Under the cotton clauses Japan exports annually to India (1) 125,000,000 yards of cotton piecegoods without obligation; (2) 325,000,000 yards in exchange for the purchase of 1,000,000 bales’of cotton; or (3) a maximum of 400,000,000 yards or 1,500,000 bales. Japanese imports will be regulated according to the piecegoods categories. Japan also recognizes India’s right to safeguard and protect her industries, though she is free to make representations if it is considered that India’s policy works harshly against her. The trade balance under the agreement will depend probably on Indo-Japanese trade in sundry goods whose, volume is at present indeterminable owing to new tariff changes.

TERMS OF AGREEMENT

DISAPPOINTMENT IN INDIA

(United Press Assn— Telegraph Copyright.) (Rec. 9.50 p.m.) Calcutta, January 5. Cotton merchants are bitterly disappointed at the terms of the IndoJapanese trade agreement, which was formally adopted to-day. It has a duration of three years. It is contended that the Japanese by holding out gained practically all they negotiated for, including a reduction of the general tariff on piece-goods from 70 to 50 per cent, and an increased quota for bleached goods imported into India.