WHAT WILL JAPAN DO?

Timaru Herald, Volume CXXXVII, Issue 19802, 18 May 1934, Page 9

WHAT WILL JAPAN DO?

EFFECT OF BRITISH QUOTAS ON HER EXPORTS. LONDON, May 10. Wide interest has been aroused by the announcement that, in order to protect Britain’s cotton and rayon industries against Japanese competition in home and colonial markets, the British Government intends to impose special import duties in England and to institute a system of import quotas in the colonies. The effect of the measures to be taken will be to reduce by two-thirds Japan’s cotton and rayon exports to British colonial markets. The question on everybody’s lips in political quarters is: What will Japan do? While Mr Runciman, in the Commons, was at pains to emphasise Britain's “friendliness” towards Japan, the general tone in Government quarters is to anticipate Japanese resentment, conceivably leading to economic retaliation. An authoritative elucidation of Britain’s action even analyses figures showing Britain’s bargaining power Undoubtedly the impression in political quarters is that no half measures will be taken.

The “Ginger Group,” comprising Lancashire members of the Commons, which has been pressing the Government for action for a long time, does not conceal its delight.

The Government's action was authoritatively explained as being due to Japan’s ingenious procrastination when a settlement could have been achieved had the Japanese been well-disposed. The Japanese reply in March contained nothing except courtesy. It was further explained that it was unnecessary to use tragic language. A rupture had not occurred. Britain remained on good terms with the Japanese, but she must guarefher own interests. The Government’s action was the only way of reaching an agreement. Japanese exports to the United Kingdom in 1933 totalled £7,220,000, whereas British exports to Japan were £4,447,000.

The Japanese cannot discriminate for a year, because the Anglo-Japanese commercial treaty requires a year’s notice of renunciation. Britain, likewise, cannot discriminate, but she is able to impose quotas which will hit Japan harS. The annual Japanese rayon and cotton exports to the colonies between 1927 and 1931 were 87,670,000 yards. The Japanese attack began at the end of 1931, when the currency was depreciated. Export by 1932 was 205,000,000 yards to all colonies. It rose further in 1933 and is still advancing. There has also been a great increase in exports of bicycles, shoes and cement. It is understood that all colonies, including Ceylon, are agreeable to quotas.