would use the proposed tariff position to ship their products to the Community on a large scale.
A final decision on the suspensions will be taken by the Council on November 4, after the 18 African associated states have been consulted, and in the light of the Indian reaction.
The fact is that in a second aide- memoire which it submitted to the Six early in October the Indian Government requested informal high level talks on a variety of problems, including tariff reductions on traditional Indian exports (heavy jute goods, coir mats and matting, semi-tanned leather, etc.), preferential tariff quotas on the exports of the new industries (oil engines, sewing machines, bicycles, etc.), and co-operation between Indian and Western industrialists.
Though the majority of the Six strongly oppose formal talks between the Commission and Indian representatives, they do not wish to give the impression of turning a deaf car to India, especially at a time when exploratory talks with Nigeria and Tunisia are expected to lxgin.
Mr Jean Rey, the member of the Commission in charge of external rela- tions, has therefore already informed the Indian mission that the Commission will continue its informal talks with Indian representatives with a view to finding a solution to the other problems raised in the two aide-memoires.
MAPAN
British Links
From V. Wolpert
Our London Correspondent SINCE THE Anglo-Japanese Treaty came into force at the beginning of May this year, British exports to Japan have been showing an upward trend. During the three months June-August they have reached the value of 14.3 million or 43% more than the corresponding period of 1962.
Imports from Japan have been increas- ing up to July this
but during year, August they amounted to only £3.4 mil- lion (against £6.6 million in August 1962) as a result of which the cummula- tive figure for the first eight months shows a small decrease to £36.3 million but Japan still retained a favourable balance of £3.1 million in her trade with Britain.
A comparison with West German trade with Japan (during the first seven months Germagpo272fp344ere DM 449 million, and German imports from Japan
DM 306 million) shows that in 1963 British exports ran at an average month- ly rate of 4 million against the German £6 million, while British imports ran at a monthly rate of £4.5 million against the German less than 4 million.
An encouraging feature in Anglo- Japanese trade is a certain diversification of goods traded, a result of more personal contacts between British businessmen visiting Japan and Japanese businessmen visiting Britain. Most of the orders which have resulted from these increased activities have not yet been executed, and, therefore, cannot be traced in the publish-
ed statistics.
It is significant, however, that during the first eight months of 1963 British imports of fish and fish preparations from Japan decreased to 12.6 million from
19.8 million during the corresponding period of 1962, and that this decrease has been offset by imports of other goods. Imports of photographic and optical goods have increased to 2.5 million (from £1.5 million); electric apparatus and appliances, including wireless sets, to £1.2 million; machinery other than elec- tric to 1.2 million; iron and steel to £800,000; and miscellaneous manufac- tures to £2.4 million.
Imports from Japan which registered a small decrease are tinned food (to £2.6 million), wood, textile yarn and fabrics (to £1 million) and textile fibres. Many Japanese manufacturers could in- crease their exports to Britain, but a greater sales effort, based on proper market research, would be required.
It is true that lately there has been in- creased participation in various interna- tional trade exhibitions in London by Japanese manufacturers-in engineering, fishery and printing equipment exhibi- tions as well as at the Ninth International Watch and Jewellery Trade Fair, and at an international radio exhibition (held at Selfridges, where some Japanese wireless sets and tape-recorders were on show). However, only a few Japanese firms took part in these exhibitions.
Next summer a Japan Industry Floating Fair will for the first time visit Europe, and it is intended that eleven European ports, including London, will be visited between May and August. Floating fairs to other areas have proved to be a success, but it should be realised that this promo- tion effort cannot be a substitute to par- ticipation in various industrial fairs.
British exports to Japan vary from in- dustry to industry. During the first eight months of 1963 electrical machinery, ap- paratus and appliances have doubled to 1.4 million, textile yarn and fabrics risen
to
3.9 million from £29 million; and
FAR EASTERN ECONOMIC REV
whisky, chemicals and synthetic organic dyestuffs all risen.
Exports of textile fibres increased from 3 million to £4 million, and within this group of goods wooltops reached the value of £2.9 million during the first eight months of 1963 as against £2.3 million during the corresponding period of 1962.
Exports of textile machinery have in- creased from 1.1 million to £1.6 mil- lion, but exports of machine tools dropped from £1.6 million to £300,000 (the Review understands that a number of machine tool orders is in the pipeline). Exports of non-ferrous metals increased to £1.8 million, but exports of iron and steel dropped from £1.3 million £200,000, and exports of transport equip- ment from £2.8 million to £2 million.
to
Although even at present many British manufacturers badly neglect opportunities of exporting their goods to Japan, a con- siderable change has taken place during the last two years, and the interest in ex- porting to Japan, in fact in two-way trade with Japan, has been growing steadily within Britain's business world.
Business Visitors Increasing
The number of British business visitors to Japan has been increasing, and it is expected that this month's visit to Japan by a working group of members of the London and Birmingham Chambers of Commerce will produce practical results.
Atomic Recently the Japan
Power Company has signed a contract with the U.K. Atomic Energy Authority on the supply of nuclear fuel to the British-de- signed nuclear power station in Japan. It is reported that British exports of this fuel during a 10-year period would amount to more than 10 million. In addition the British consortium, Nuclear Chemical Plant, has recently received a letter of intent from Japan for nuclear fuel reprocessing plant design.
a
These orders which follow the building of British-designed nuclear
power station at Tokaimura, clearly show the value of securing a participation by Bri- tish industrial firms in Japan's industrial expansion. And there is no doubt that in this field there are still many neglected opportunities. But there is a growing confidence among British businessmen in further development of trade between the two countries, and one of the illustrations for this confidence is the fact that the Ben Line's cargo-cum-passenger liner Benloyal inaugurated in September a new fortnightly fast service to Japan.
China's interest in placing orders for complete plant (one plant has been al-
October 31, 1963
ready ordered in Japan, and another in Holland) may create possibilities for co- operation between British and Japanese firms in securing and jointly executing such contracts.
More with Moscow From V. Wolpert
Our London Correspondent
THE RECENTLY published 1962 So- vict Foreign Trade Yearbook shows that Russian trade with non-Communist coun- tries in Asia reached a higher level than in 1961, and that a small decrease was only registered in the cases of Malaya (due to reduced imports from Malaya) and Thailand (trade with which is any- how comparatively small),
A considerable increase in Soviet ex- ports to India took place in 1962, and India has become the biggest non-Com- munist Asian market of the Soviet Union, a particularly important development in the light of the deterioration of Moscow- Peking relations. However, the biggest trading partner of the Soviet Union in this area was Japan, and while in 1961 trade with Japan accounted for 1.5% of Soviet global trade, this share increased to 1.9% in 1962. India accounted for 1.4% in 1961, increased to 1.5% in 1962. The Soviet Yearbook does not mention trade with Hongkong, but according to the the official Hongkong statistics Colony's imports from the Soviet Union amounted to HK$4.9 million in 1962 (including animal and vegetable crude inedible materials $2.7 million, and paper and board $2.1 million), as against Hongkong exports to the Soviet Union valued at only IIK$11,807 (mainly furni- ture and fixtures) with the result that Hongkong had a big unfavourable balance in her trade with the Soviet Union.
What are the chances of Hongkong's exports of cotton textiles to the Soviet Union at least to the value of Hong- kong's imports from the Soviet Union? In the case of cotton piecegoods the So- viet Union is a net exporter, but these imports have been increasing at a higher rate than the exports (in fact the 1962 exports show a very small decrease com- pared with the 1961 exports):
Cotton piecegoods (million metres)
imports exports
165.7
1958 1961
1962
23.7
60.9
97.2
194.9
193.1
Over half of the 1962 Soviet exports of cotton piecegoods went to various Asian markets, including Afghanistan
million (18.3
Burma metres),
(12
Page 272
223
ASIAN COMMENTARY by DANIEL WOLFSTONE
Dr Subandrio, in a speech in Pakan- baru in central Sumatra on October 17, let fall a gem of an argument against Malaysia. The Tunku, the Indonesian Foreign Minister declared, had the ultimate ambition of annex- ing Sumatra and Indonesian Kaliman- tan (Borneo).
"In North Kalimantan," according to the Antara report of this speech, "this aim was pursued by setting economic development at a greater pace than in Indonesian Kalimantan with the expectation that Indonesian Kalimantan would revolt and sccede into Malaysian territory."
What a fantastic admission, and what an advertisement of the Indone- sian Government's sense of weakness in its own back- yard. Indonesian
sia come between the foreign dollar and its transformation into concrete progress in Kalimantan?
I do not mean to carp. We know that the Indonesians have faced more difficulties than most in their effort to begin development: they are psychologically diffident, practically inexperienced. They have faced inter- nal rebellion and natural calamities.
But surely after more than ten years of conscious effort some results ought to be visible in the field. If Dr Subandrio's Government cannot deli- ver a few goods to the Kalimantan people, maybe our conclusion should be that it ought to adopt some of the policies carried out by the Tunku's Government-if these lead to develop-
envy of Malaysian Slow Down, Please!
economic progress
is nakedly exposed. How sinister, to pour money into Sabah and Sarawak and encourage enterprise there, in order to make their neighbours jealous.
What does Dr Subandrio expect us to think? Does he expect us to say that Malaysia should damp down her excessive economic advance simply to make things less uncomfortable across the border?
Are we to conclude that any country trying to pull itself up by the boot- straps through honest effort and good administration and wise policy and sheer diligence should first make sure that it is not going to outdo what is happening all around it?
Is economic development to be thus levelled out at the pace of the slowest? What sort of vision of Asian economic advance does Dr Subandrio nurse, what sort of vista does he offer us?
And why, one must ask, is the pace in Indonesian Kalimantan slower? What has been happening to the US$3,000,000,000 that friendly coun- tries from all over the world, from Russia to America, from Britain to China, have been donating to the In- donesian people in the past decade? What is the news of the Eight-Year Development Plan for the Republic of Indonesia?
Has the Tunku or any other out- sider been interfering in the Republic's economic development? Has Malay-
ment.
The Tunku may
or may not have ambitions in Su- matra (almost certainly not, although one might argue that a sudden access of Malayan nationalist fervour in Malaysia might set in motion forces that the Tunku or his successor could not control) but at least it cannot be said of him that he does not know how to conduct economic development.
Let us hear, Dr Subandrio, what concrete steps the Indonesian Govern- ment is taking to develop Kalimantan and what is its record in this matter since it assumed the political respon- sibility for governing that territory.
I have a feeling that the Malaysian confrontation is going to provide a powerful boost to the advance, not of the economy, but of economic realism in Indonesia and the Philippines. Absolutely wild statements have been flying around Manila and Djakarta in the wake of the adjustment.
Mature Filipinos are absurdly extravagant in their conclusions and claims about their part in the re- oriented (re-occidented?) Indonesian trade, and Indonesians still believe that you only have to send your Foreign Minister into Sumatra and hold a few emergency meetings and make bold decisions, and you have a nice apparatus of alternative free ports with processing and servicing facilities -and the 'Sino-British' stranglehold is broken.
Daniel bloffstore
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