226
36
or less regardless of price the native makes are good enough for their purpose and they are put on the market at much lower prices than British goods.
A considerable amount of woollen cloth is worn under kimonos, etc. (where imperfections are not much seen), and even in outer garments it is noticeable that the general buying public does not demand that standard of perfection in manufacture to which we are accustomed in Great Britain.
Japan has much to learn in the finishing of wool cloths, and in better class cloths particularly (a limited market at most), it is probable that the superiority of English finishing (apart from our better designs and colours) will hold the market for some time
to come.
In medium and lower quality cloths, the tariff (being by weight, except on luxury goods) gives the Japanese maker a greater pro- portionate advantage over the imported makes, and price is the deciding factor in this branch of the trade.
53. In passing, it may be noted that this extension of the industry has not been achieved without some pain and suffering as the following table shows:-
BUSINESS RESULTS OF FIVE COMPANIES (FOUR
OF 1929 AND FIRST HALF OF 1930 | —— OWING TO
LIQUIDATION).
Actual capital employed.
Gross Receipts.
37
THE JAPANESE TARIFF ON WOOL TEXTILE GOODS. 55. Details of the tariff on wool textile imports are given in Appendix B. From this it will be seen that wool is imported free of duty as in England.
Tops, which were imported free of duty before 1926, are now subject to a tariff of 14.50 yen per 100 kin, or 2.67d. per lb.
Worsted Yarns. The duty is 27.70 yen per 100 kin, or 5.14d. per lb., for counts thicker than 2/32 m.m. and 24.42 yen per 100 kin, or 4.53d. per lb. for finer counts.
Woollen Yarns. The duty is 22.50 yen per 100 kin, or 4.14d. per lb.
Dyed Yarns have to bear an additional charge of 2.50 yen per 100 kin, or .46d. per lb.
Woollen and Worsted Fabrics. The tariff is adjusted accord- ing to the weight of the cloth as seen from the following table:
ONLY FOR SECOND HALF ONE COMPANY BEING
IN
100 gr. or less
Profit or Loss,
£
Weight per sq. metre.
Approx. equal to oz. per yd. 36" wide.
All Wool.
d.
per Ib.
Wool and Cotton.
d.
per lb.
4.2
Y. 57'50 per 100 kin
10.6
55
10-2
(or 43.10
conven-
tional).
8.0
100 gr. to 200 gr. 200 gr. to 500 gr. Over 500 gr.
4.2 to 8-4
97.50
18.0
52.50
9.7
8.4 to 21.1- Over 21.1
90.00
16.7
60.40
11.2
64.70
11.9
32.60
5.3
£
1st half 2nd
22,696,000
1928
21,878,000
£ 11,027,000 11,450,000
1st half 2nd 1st
1929
23,241,000
10,512,000
17,412,000
1930
"
15,648,000
8,192,000 5,344,000
11
533,000 Profit 502,000 273,000 1,249,000 Loss
719,000
Readjustments of the "harder hit concerns are under way and will doubtless take some time to effect, but it must be assumed as certain that, owing to the general policy of the Japanese Govern- ment towards industry and the financial facilities provided by the banks (it is said often by Government influence and with Govern- ment backing) these readjustments will be made.
54. We are forced to the conclusion that imports of tops, yarns and cloth into Japan will further decrease and may become com- paratively insignificant. Continental competition with Great Britain, although to some extent a factor, is not the vital one, and our opinion is that so far as Continental imports into Japan are concerned it is only a question of time to find the necessary capital and plant, before Japan will be able, in effect, to satisfy the whole of her own needs by her own production.
It will be observed that the amount of protection afforded by the Japanese tariff, increases progressively from nothing on the raw material up to a substantial duty on the finished cloth, approxi- mately according to the amount of labour involved in the process of manufacture.
Section 2. Japan's Competitive Power.
56. There remains then the question of Japan's future com- petitive power in neutral markets. In considering this, the follow- ing comparison of the wool and textile industry in Great Britain with the industry in Japan, may be useful.
ORGANISATION.
57. Whereas in the worsted industry in England, the processes of sorting, combing, spinning, weaving, dyeing and finishing are generally carried out by separate firms, in Japan the larger firms
10375
B 3
2.2.7
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