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12
13. We shall show that Japan is becoming self supporting in most of the manufactured goods which Great Britain formerly supplied. The bulk of Japan's import trade now consists of raw material and food such as:-
Raw Cotton from India, the United States, etc.
Raw Wool from Australia.
Timber from Canada, the United States, and Asiatic Russia, Wheat from Canada and the United States.
Sugar from Java,
Metals:
Iron ore from China and Malaya.
Pig Iron from India,
Tin from China and Malaya.
Zinc from Canada and Australia.
Aluminium chiefly from the United States.
Lead from Canada and the United States.
14. An examination of the goods offered for sale in the best departmental stores in Japanese cities reveals the fact that, with the exception of some good quality cotton, woollen and worsted cloths, a few high-class woollen knitted goods, a few hats, and some special perfumes, almost all goods are of Japanese produc- tion. Owing to the growth of Japanese industry referred to above, Japan has steadily decreased her imports of manufactured and semi-manufactured goods, which now amount to only 21 per cent. of her total imports.
For this relatively small amount of manufactured goods, Japan can call upon the manufacturers of the whole world. Japan is a buyer's market, and sellers, therefore, must compete keenly with one another to induce the Japanese to buy. Under such circum- stances, the chief inducement a seller can offer is price, and there is no doubt that the relative decline of British exports to Japan is due more to the high price of British products than to any other cause. The British share of Japan's imports of such finished and semi-finished products as that market requires, shows a steady decline for some years past.
15. A bird's eye view of Japan's total imports in 1913 and later, may be given as follows:
TOTAL IMPORTS INTO JAPAN.
Per cent. from Germany.
Million £.
Per cent. from
Gt. Britain.
Per cent. from the United States.
1913
72.9
16.8
16.7
9.4
1922
189-0
12+2
31.5
5.8
1929
221-6
6.9
29.5
7.0
1930
154-6
5.9
28.6
6.8
13
The foregoing percentages are based on the total values of all imports, including raw materials and foodstuffs, many of which, of a high import value, e.g., raw cotton, oil, timber, wheat, Great Britain cannot supply, while the United States can. Germany, however, has no advantage over Great Britain in this respect. She exports to Japan the same kinds of goods as Great Britain, and the German percentages given above accurately represent competition between Germany and Great Britain in the Japanese import trade.
It will be observed that during the world depression of 1930, the value of the total imports into Japan decreased by £67 million. Great Britain's percentage share decreased from 6.9 per cent. in 1929 to 5.9 per cent. in 1930, and was therefore considerably below the percentage share of Germany in 1930 (6.8 per cent.).
16. In addition to what has been said above, the United States has a further advantage as a supplier of goods to Japan. Other things being equal, a country will buy most from the markets to which it sells most, and this point deserves more attention than it usually receives. The United States is Japan's best customer. Japan is largely dependent upon the United States for her com- mercial and industrial welfare, and, it might be added, for her financial welfare. The United States is only ten days' sail from Japan and every passenger vessel brings large numbers of American business men to Japan and takes many Japanese to the United States. The raw silk bills drawn by Japan on New York amount to some £70 million per annum, and most of that amount is needed to finance Japan's raw cotton purchases. The United States in recent years has been the principal lender of money to Japan, e.g.,
1924 Post earthquake Government Loan:
United States
Great Britain
1927 Tokyo Electric Light Issue:
United States
Great Britain
Yeri.
300,000,000 (30,000,000) 250,000,000 (25,000,000)
£
£
Yer. 140,000,000 (14,000,000) 45,000,000 (4,500,000)
In these circumstances Japan has many inducements to purchase in the United States to a greater extent than elsewhere.
17. Great Britain's interest in the Japanese market lies in sup- plying manufactured goods. We regret to record an increasing failure on the part of British manufacturers to compete with
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