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Head Office: Yuraku-cho, Tokyo, Japan. Overseas Branches: New York Agency. Bangkok Branch. Singapore Branch.
London
Branch. Bombay Branch.
INDUSTRIAL MATCHMAKER
go-between & follow-up
Up your profits through technical, manufactur- ing, marketing, and other kinds of tie-ups with Japanese companies. With its long history as Japan's leading long-term industrial credit insti- tution, the Industrial Bank of Japan is uniquely qualified to act as go-between in all key industries. We also offer complete international banking serv- ices, credit information, loan guarantees, and con- scientious follow-up. All inquiries will receive prompt, discreet attention.
THE INDUSTRIAL BANK OF JAPAN, LTD.
Head Office: 8, 1-chome, Marunouchi, Chiyoda-ku, Tokyo. Cable Address: KOGIN TOKYO. Telex: TK 2325. New York Office: 30 Broad Street, New York 4, N.Y. Tei: HAnover 2-0657. Cable Address: KOGYOGINKO NEWYORK. Telex: 42 0802. Frankfurt Office: Escher- sheimer Landstrasse 9, Frankfurt a.M., F.R. Germany. Tel. 558851, Cable Address: KOGYOGINKO FRANKFURT MAIN,Telex: 413132.
→ober 31, 1963
exports of some of the important com- modities to Hongkong in fear that they might be slipped back to Singapore, whereas direct exports to Japan are being encouraged.
On October 20, the Indonesian Gov- ernment announced the allocation of for- eign exchange for the imports of raw materials, equipment and spare parts from China and Japan. The imports from Japan will consist of iron and steel pro- ducts, galvanised iron sheets, motor-car spare parts, machinery spare parts, chemicals, tyres and paper.
Japan is reported to be interested in exploiting timber resources in West Irian. The giant department store in Djakarta Sarinah is being built with Japanese credit. Japan is said to have interest in the tourism industry of Indonesia: a restaurant
is
now going up in Djakarta with Japanese help.
Mis-timed Visit?
From Bernardino Ronquillo, Manila
WHEN JAPANESE Prime Minister Hayato Ikeda visited Manila recently in the midst of a Southeast Asian crisis that threatened the premature breakup of Maphilindo (Malaya, Philippines and Indonesia), there was speculation that he came urgently to mediate the dispute between the newly born Federation of Malaysia on the one hand and the Philippines and Indonesia on the other.
Japan, as the most affluent and the most influential of the Asian countries, could be in a position to act as mediator between the two parties in the conflict. Both the Philippines and Indonesia have substantial trade with Japan and look forward to getting long-term loans or financial assistance from the Japanese to help support their economic development.
Prime Minister Ikeda obviously wanted to sound out Filipino officials on the prospects of early ratification of the treaty of friendship, commerce and navi- gation which was signed a few years ago but which the Philippine Senate has shelved and refused to act upon obsten- sibly for lack of time owing to more pressing matters. The Prime Minsiter was more frank about one of the objectives of his visit here-the easing of existing restrictions imposed by the Philippine Government on the activities of Japanese "liaison" representatives and relaxation of the quota on Japanese immigrants.
Although Mr Ikeda's visit was consi- dered fruitful in that it strengthened the bonds of goodwill and friendship between the two countries. it was the consensus here that he came at a rather wrong
time. It was bad timing, it was pointed out, because this is an election year in the Philippines and the country is so pre- occupied with serious domestic problems, such as the rice crisis and the credit tightening to fight inflation, as well as the break in diplomatic relations with Malaysia. The Prime Minister thus left Manila for Djakarta with very little con- crete achievements to speak of.
But the Japanese Premier was more successful in
committing President Macapagal and other top Filipino officials to broadening trade between the two countries. This agreement in principle was reached in a 45-minute conference between Macapagal and Ikeda at Mala- cañang Palace, but the details of the new accord were still being ironed out between the technical panels of both countries when the Japanese Prime Minister left on September 26.
The two leaders exchanged views on ways and means of broadening trade be- tween Japan and the Philippines. Mr Ikeda offered to extend every possible as- sistance through utilisation of repara- tions, economic development loans and deferred payment facilities.
Pending resolution of the question of ratification of the treaty of amity, com- merce and navigation between the two countries, arrangements would be worked out governing relations between nationals of both countries in the conduct of their business and related matters so as to ex- pedite implementation of the Japanese Prime Minister's offer.
to
The Prime Minister was understood to have offered to liberalise the terms of the US$250 million loan component of the reparations agreement enable Philippine investors to utilise this out- side source of capital for economic deve- lopment.
Also discussed between the two officials was expansion of the temporary air agreement between Japan and the Philip pines. This would involve landing rights of Philippine Air Lines planes in Tokyo and points beyond on a reciprocal basis.
The Philippines was in favour of
1958
1959
1960
1961
1962
Philippine-Japan Trade-
1958-1962
(F.O.B. Value in Million Pesos)
Philippine Philippine
Exports
Imports
156.9
162.3
180.7
220.7
281.0
263.6
219.0
273.4
393.3
452.8
Source: Bureau of Census & Statistics, Manila.
Page 291
joint venture projects between Japanese and Filipino inves tors, Mr Ikeda was told, and it was sug- gested that arrange-
261
JAPAN INTO AFFLUENCE
Special
ments toward fulfilment of this objective be stepped up. The Japanese officials, for their part, sought relaxation of the quota the Philippines Government had imposed on Japanese immigration into this coun- try. Only 350 Japanese nationals could stay in the Philippines at any given time
11-Philippine-Japan Trade-
Value in Million Pesos 1. Philippine Imports
Machinery non-elec. Transport equipment Iron and steel
Fish & preps.
Misc. chemicals,
Plastic mat. regenerated
%
1962 1961 change
43.5 28.9
+50
39.6 48.5
- 19
86.8 49.9
+ 7+
Petroleum & prods.
11.6
5.5
132
Yarns, fabrics
made-ups
39.3
15.6
+152
Textile fibres
19.9
3.4
+485
Elect. machinery, appara,
etc.
14.6
8.5
+72
Paper, board & mnfrs.
3.5
1.9 +84
Mnfrs of netals
17.4
7.7
+126
11.2
4.4
+154
4.4
2.3 +91
Fertilisers, mnfrd.
20.0
8.6
+132
Cellulose, and artificial 6.0
2.0
+200
reins
Non-ferrous metals
11.6
4.6
+152
Non-metallic min. mfrs.
7.3
4.1
+ 78
Misc. mnfred. arts.
4.5
1.6
+381
Sci. instruments, & watches
and clocks
3.7
1,5
+146
Rubber mafrs.
6.5
1.9
+242
Transactions not classified
acc. to kind
18.2
5.3
+243
Crude fertilisers & mins. 1.7
0.7
+142
Explosives
1.4
0.6
+133
Others
20.6
11.2
+ 83
Total
393.3 219.0 +79
2. Philippine Exports
Metalliferrous ores & scraps
Oil seeds, nuts & kernels.
Sugar and preps.
Feeding stuff for ani.
Wood, lumber and cork
Textile fibres
Fruits and vegs. Others
Total
Source: Bureau of Census
122.5 86.6
+41
4.7
0.8
+487
10.5
7.0
279.6
7.2
4.9
+ 50
25.4
18.9
+ 34
0.9
2.0 155.2
452.8 273.4 +65
& Statistics, Manila.
to do business here, and these nationals could only stay for a maximum period of one year.
Likewise sought by the Japanese visitor was easing of the restrictions on the activities of Japanese liaison representa- tives in the Philippines. Japanese busi- nessmen under the present setup could not act as branch representatives of their firms in Tokyo.
It was in the agreement to expand trade between Japan and the Philippines that Premier Ikeda was probably more successful. Filipinos realise that Japan, in her present state of affluence, could be a much larger market for Philippine products than she has been so far.
Japan has always been the second largest market and also the second largest supplier of the Philipgrs of44e-war. Because of Japes burgeoning economy, however, plus her proximity to this coun-
262
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