WOOL FOR JAPAN

Hokitika Guardian, 30 September 1933, Page 6

WOOL FOR JAPAN

PLANS FOR FUTURE NEEDS SUBSTITUTES FOR AUSTRALIA TOIvIO. September 18. The Japanese Government and woollen mill industrialists are now making an extensile study of an alternative source of supply of raw wool for till rapidly growing woollen yarn and clot) l’.dustry in this country, in case of having to abandon Australian wool if that Dominion shuts out Japanese goods, by means of prohibitive tariff’s or other means. The evident intention is, in such event, to buy from countries that will in turn purchase Japanese cotton, liayon and other manufactures, and it is also evident that peri'erenee will be given to non-Brltsh Empire countries.

For many years past. Japan has bought immense quantities of raw wool from Australia and, in fact, is one of the Dominion’s best customers, especially as the yearly trade balance is always in Australia’s favour. Since the Ottawa Conference, however, with its new trade pjrcts .among the nations of tlie British Common-wealth—-which. it Is tlie prevailing view in Japan, created an “economic bloc” that in practice is chiefly being directed ! against this country—the idea has been growing here that before long it, might very likely become necessary to look elsewhere for Japanese woollen mills’ 'requirements, or a large part, of them at any rate. RELATIONS WITH AUSTRALIA Tlie recently increasing agitation in Australia against- Japanese goods’ com' petition and for the application to them of auti-“dnmping” duties, which are fairly fully reported to Japan by press and Japanese consular dispatches, has crystallised the foregoing idea, despit.r the likewise reported hesitation of the Australian Government to take such drastic steps against Japanese manufactures as might precipitate a. boycott here against Australian products similar to that in effect against Indian raw cotton. In view of the situation apparently reproaching a climax. Count TJcliida, Japanese Foreign Minister, has called a conference cf wool lenders, includin'!; the powerful .Mitsui, Mitsubishi and Karieiiiatsu corporations,,.to discuss the maVrr with a view to arranging at a definite policy. It is generally understood here, '-n this connection, that tlie Japanese Foreign Office recently epronehed the British Foreign Office with the idea of cone lining a trade conven'poll, between Japan and Australia. but was rebuffed o>i the ground that it would contravene the Ottawa agreements. This lias hardened Japanese feeling that this country must fend for herself, and, moreover, , must lose no time in doing so.

BUYERS OF AUSTRALIAN WOOL

AViw.t is reported here to be the general feeling in Australia for shutting out Japanese manfactures is regarded as particularly unfortunate eventually for Australia, especially as Japan lias in fact been the heaviest buyer of Australian wool for the past two years at least.

Prominent among the countries to which the Japanese woollen makers are ready to turn for their raw material are Argentina and Uruguay, countries which have lately shown a .lively disposition to welcome Japanese textiles and other goods, if this country will Reciprocate. T) is realised dn both skies that trade must be. largely on barter terms, on account of the South American countries’ financial conditions, especially Argentina, and i'l is also considered that this very fact is likely to give solidity to trade arrangements that may be made.

South American trade Commission,s have been in Japan for some weeks past, and Japanese trade delegations are preparing to make extensive tours of Latin America —one such party Is 'already on its way and another is leaving in the near future. The former plans also to tour African markets, ■and the same thing will be done bv still a third trade commission, which is expected to leave for south, eastern and western Africa before long.

AN AMBITIOUS PLAN

In tlie mean time, the Japanese Government and woo)Inn mills and traders ■arc laying the initial plans, in cooperation with the Government of the new State of Manchukuo, to obtain law wool supplies from the latter country in the more distant future. This ambitious plan i s proposed to bo in'a.ugurated with the establishment in the near future of the Ja pan-Man - chnkuo Sheep liaising Assooiat' on, which will have the duty of preparing for making Japan eventually largely seif-supplying in the matter of raw wool.

Decision was taken to form the association at a meet ng presided over I'V the Colonial Minister, Mr Rvutaro Xagai. It was attended by the Colon': a I \’ee-Mimster. Mr Yasuiiro Tsutsnmi,. and other loading officials of the Minisj try, as well as by directors and other important officials pf the Japanese j woollen textile manufacturing companies, some 10 in number, also a cirectir of tlie South Manchurio llailway company. CAPITAL OF £1 200,000 The association is to be founded with I a. fund of 2,000,000 yen (about £120,000 at present exchange rates), half of, which will be furnished by tlie Japanese Government, 700,000 veil by the woollen mills and traders, and 300 000 yen by the South Manchuria Kailway. (The

Japanese Government, also, nccord’ng to present plans, proposes to furnish the association with a yearly subsidy, the amount for the first year being estimated at 83,000 yen. The association is to foster sheep-raising on the plains of Manchuria and such: parts of Mongol a as are incorporated in the now State, and possibly also in Korea. According to present plans the as- j sociation is to he- actually formed early I next year, aul its funds are to he! used to the extent of 100,000 yen a year to 'lmprove the quality of the •sheep in M'anehukuo, and to encourage sheep farming.