212
22
to make elaborate machinery in small jobbing workshops or low- grade machinery in elaborately equipped plants are both to be observed. Where, under foreign licence or direction, a special manufacture is undertaken, good results are achieved, but often the overhead charges make the industry non-competitive except under the protection of subsidy and tariff.
GOVERNMENT ASSISTANCE TO THE ENGINEERING
INDUSTRY.
30. The Japanese engineering industry, like many others in Japan, has been steadily fostered by the Government and Japanese capitalists under the protecting influence of carefully regulated tariffs. The tariff is being constantly revised in order to afford more and more complete protection against imports. In some instances a tariff rate levied initially on the weight of machinery has been later revised on an ad valorem basis, and there is no hesitation in changing duties to suit the Japanese requirements. Government departments and those municipalities which are under Government control, are instructed wherever possible to place busi- ness with home manufacturers, and they may have to accept an in- ferior and possibly dearer make of Japanese article in preference to a foreign article. In the list issued by the Imperial Government Railways of Japan of firms permitted to tender, it is noticeable that no foreign firm is mentioned.
COPYING OF MACHINERY.
31. But while one can sympathise with the idea of conserving all work on public service for home makers, the encouragement of copying is less commendable. Many instances could be cited where dubious methods have been adopted to obtain technical information from foreign concerns for the benefit of the Japanese maker.
The practice of copying is so developed that even any catalogue or circular of particular excellence produced by a foreigner will be immediately copied and used, a Japanese name being sub- stituted, the text being translated into Japanese. This is all part of the educational scheme by means of which the Government and the great group leaders are determined that technical knowledge shall be widespread and up-to-date.
EXHIBITIONS.
32. Examples of quite legitimate methods are the establishment of technical universities and research departments, and the organ- isation of trade exhibitions. These last are thronged with students and exhibit not only numerous products of Japanese factories but also models of factories, mines and civil engineering works.
。
21
23
CL
A section is also given to elaborate statistical charts, safety first publicity, and the study of industrial pathology, while welfare work is encouraged and assisted by Government example and instruction.
PROSPECTS.
33. That the Japanese industrialist is benefiting from his tuition, is shown clearly by the fact that production of machinery and equipment has reached a figure of close on £60 million out of a total requirement of £70 million, leaving only 14 per cent. for importation. From this it is clear that a state of self-suffi- ciency is certainly attainable, if Japanese users are satisfied with such a programme.
Discussions, however, regarding the support home industries campaign suggest that one industry is not going to allow itself to be handicapped for the benefit of another by using any but the most suitable plant, and it is almost certain that, with a return of the trade expansion movement, a market for imported plant and equipment will again develop. Doubtless, and quite rightly, in the immediate future work for Government service or public utilities will be carried out by Japanese firms, even though the results may be less satisfactory than would be achieved by other manufacturing nations. It is likely that there will be a still greater demand for improved public utilities in view of the educa- tional advance now proceeding in Japan. The present roads are not worthy of an efficient country and will have to be thoroughly developed. Improvements of sanitary and water facilities are already being undertaken. A great deal of State or municipal ex- penditure is clearly in sight. It would be extravagant for Japan to divert 'her resources from the great developments of the near future to the purpose of supporting uneconomic sections of the engineer- ing industry. In the more distant future, therefore, it is possible that the Japanese authorities may realise that, on the whole, the country loses more than it gains in purchasing large quantities of goods at home which are inferior to those which could be im- ported from abroad. In that event, when trade improves, there may be good openings for machinery sales by those who present a good case and sell in proper fashion. The requirements of Japan for machinery are so varied that any analysis of the market is beyond the scope of this survey and would merely be repeating what can be found in considerable detail in the Annual Reports made by H.M. Commercial Counsellor and H.M. Commercial Secretary at Tokyo.
RATIONALISATION.
22
frozen
34. The present depression is showing up a rather position and the banks look like "owning many of the weaker and some of the larger companies by accumulation of industrial
collateral."
213
No comments yet.
Private notes are available after approval.