JAPANESE TRADE IN NEW ZEALAND.

Timaru Herald, Volume CXLIII, Issue 20929, 7 January 1938, Page 6

JAPANESE TRADE IN NEW ZEALAND.

So much talk is being indulged in by the mouthpieces of Japanese militarism that the impression would be created—if well-informed countries did not know better —that Japan can live without the good favours of the foreigners who purchase her goods. Even in New Zealand, Japanese merchants have been finding a ready market for their manufactured goods. It is therefore of interest to quote the report on Economic and Commercial conditions in New Zealanil published by the British Department of Overseas Trade: Figures show Japanese gains at the expense of the United Kingdom in cotton, linen, and canvas piece-goods. The United Kingdom’s proportion of the total value of these imports was 90.5 per cent, in 1934, 87.4 per cent, in 1935, and 81.4 per cent, in 1936, while Japan’s proportions were 5.6 per cent., 8.7 per cent., and 14.9 per cent. Oh the other hand, although Japan retained in 1936 the first position as a source of supply of piece-goods of silk and artificial silk, the United Kingdom proportion of the trade rose from 33.2 per cent, in 1935 to 34.8 per cent, in 1936, Japan’s share falling from 45.1 per cent, to 43.1 per cent. “So far as prices are concerned,” states the report, “United Kingdom manufacturers appear quite unable to compete with the prices quoted from Japan.’’

In his pamphlet entitled “The Case for Laboub,” under the title “The Basis of Trade,” Mr Savage, writing as Leader of the New Zealand Labour Party, made this pronouncement, which will doubtless be fully appreciated by the Japanese authorities:

“The case for Labour is based upon the fact that the trade of the Dominion—internal and external—cannot exceed the purchasing power of this country. Whether we trade with Britain or Japan we cannot have one-way trade and we must, therefore be in a position to buy what is produced in New Zealand for use in New Zealand as well as be able to buy and use all imports that come from abroad in exchange for our exports. That brings us to several well-established facts.

But the steadily increasing trade Japan has built up with Britain aud the Commonwealth of British Nations generally, at the moment, stands in grave peril of being severely slashed by the rising tide of indignation that is sweeping the democratic world in face of Japanese aggression in China. It remains to be seen, however, if the good sense and business sagacity of the Japanese financiers will prevail before the structure of Nippon’s economic life is threatened by the enormous drain of Japan’s wars of aggression. It is not surprising, moreover, that ominous warnings of the dangers threatening Japan’s financial structure are being sounded by leading Japanese businessmen and financiers. Japan, on her part, may be able to impose import restrictions in the hope of enabling her militarists to carry through their ambitious plans but if Japan’s warlike activities are tending to estrange her trade relations throughout the world, it can be taken for granted that a country so much dependent on foreign trade Can scarcely maintain her existing national economy, if she persists in quarrelling with her best customers.