U.S. TRADE WITH JAPAN

Chronicle (Levin), 6 May 1947, Page 7

U.S. TRADE WITH JAPAN

r Received Monday, 7 p.m. . ' . WASHINGTON, May 4. Thc State Department is planuing to put into efl'ect by July 15, a scheme foi the resumption of foreign trading with Japan, says the United Press. Tlie scheme provides that private businessmen of foreign countries may visit Japan under a quota system which is necessary because of the limited living accommoodation. Foreign buyers would discuss purehases with suppliers but according to the scheme, prices would be arranged by the J apanese State Trading Corporation which would pay the sup plier in yen. The buyer would pay i'oi tlie goods by remitting to th- i ireme Allied Command's export .. i in dollars, sterling or other cun ..i - ,,ised 011 fair world market value. Iit cur i-ency would be held in the export account to pay for the raw material. Imports under this sy^stem would avoid the necessity for establishing a foreign commer^iai exchange rate for the yen and also would in effect provide some basis for determining such a rate when Allied officials beliOv.e the time is right to set it. It is expected a combincd mission representing the War, Commerce and Treasury State Departments will leave soon for Tokio to put thc plan into efl'ect. . The mission will also eonsult General MacArthur's experts on the possibility of allowing Aiuerican and other foreign business men to finance Japanese manufacturers by pro viding them with tlie needed raw materials. Tlie foreign businessman would hold a lien against the Japan ese produets as" security for the raw materials he financed. United States bankers are reported to be reluctant to finance such arrangements because of the lack of security to back up a lien but United States Government experts consider a lien can be backed up by using about 150,000,000. dollars of Japanese gold as security.