COMPETITION FROM JAPANESE GOODS THREAT TO DOMINION

Wanganui Chronicle, 8 September 1950, Page 8

COMPETITION FROM JAPANESE GOODS THREAT TO DOMINION

“Post-war Japan in a few years will become one of the greatest competitors on the markets of the world. Her products will be designed and made to a standard to meet world requirements,” said the president (Mr. S. J. Sullivan) at a meeting of the executive of the Wanganui Employers’ Association.

“With a view to reviving Japan’s domestic and export markets the United States of America, which is in charge of the nation today, for the past two years has appropriated 500,000,000 dollars annually as aid to Japan,” said Mr. Sullivan. “The obvious object has been rehabilitation of Japan and to lead her to the position of a peaceful and democratic nation. With American aid and guidance, inflation in Japan was halted and a satisfactory degree of economic stability was established, and the budget was balanced. The Japanese yen was set at the exchange rate 1949 of 360 to the American dollar. This rate of exchange is very much In favour of the dollar. American aid this year will be reduced by 34 per cent., which will mean that Japan herselft will be compelled to fill the gap by greater industrial effort. Japan, to live, will be called upon to meet the toughest markets of the world. Her unsold stock piles today are estimated at 45 to 50,000,000 pounds. This means her foreign trade must expand. When a nation anticipates that her cotton textiles will increase this year to 800,000,000 yards, that is why she must sell cheaply and quickly.

“With these facts before us, the future of labour in New Zealand does not look just as good as it should,” said Mr. Sullivan. “Our people will buy Japanese or Western European goods if the quality and the price is more attractive than our own products. Business organisations in Britain have pointed out the threat of Japan’s competition and have strongly advised the English manufacturers to concentrate on quality and price as a factor in meeting Eastern competition. Already Japan is concluding trading agreements with European and Continental Governments. the object being exchange of manufactured goods for raw materials, which the respective import nations are able to supply. Japanese trade envoys are persistent in their promise that they aim at better goods and cheaper to satisfy the world’s markets. MARKETS CREATED “With this threat before us and the great possibility of its repercussions on New Zealand industry, we must strain every nerve and put our house in order to meet it,” said Mr. Sullivan. “Japan’s chief problem is finding new sources of supply; that is why she must fully investigate every potential market. From Thailand comes the news that Japan had signed a contract and that, too, in the face of British competition, for the supply of locomotives and rolling stock to the value of 4,200,000 American dollars —Japan’s purchase of rice alone from Thailand amounted to 29,000,000 dollars. To meet this and other purchases she must supply the market with machinery, textiles and other Japanese products. A problem faces not only the people of the Orient, but has its menace in New Zealand, as these countries and peoples are now much nearer to our shore? than they were some years ago. Japanese attitude in South Africa aims at the same thing. In South Africa fear exists amongst manufacturing and importing houses that unless Japanese textile imports are fully controlled, overseas capital for local industries would be withdrawn, which would give Japan the market. Japanese commercial envoys are loud in their praise of Japan’s goods; they definitely state they want to build a reputation for selling only the best. In exchange they state they will take raw wool and hides, with which they can make woollen goods and shoes. This is the story and the objective wherever Japan trades. She trades as far north in Europe as Sweden, a Swed-ish-Japanese agreement having just been completed in whwh 50,000,000 Swedish crowns were involved.”