between
JAPAN INTO Korea
AFFLUENCE
Special
South
and Japan, however, awaits the establishment of normal rela- tions between the countries,
two
which have been cut since the end
of World War II. Prospects for this are uncertain in view of the strong domes- tic opposition to the "low (soft) attitude" toward Japan of General Park Chung Hee's military government. This opposi tion may gain further momentum after
Cambodia's Main Supplier
From K. E. Chantarit, Phnompenh
JAPAN succeeded last year in dislodging France from its position as principal sup- plier to Cambodia. It also became the first Asian nation to bring this country of 5 million inhabitants substantial technical and financial aid for its de- velopment. It is also noteworthy that Cambodia is one of the few countries affected by the last World War to re- nounce voluntarily all claim to the sub- stantial reparations for war damage that Japan should normally have paid.
The agreement for economic and
technical cooperation concluded in March 1959 between the two countries for a total of Yen 1,500 million has been pro- longed for a further period of two years, until January 1964. It provides for deli- very to Cambodia of:
(1) a centre for scientific farming at Tuoi Samrong (Battambang);
(2) a stock-breeding centre at Sré Siem (Kompong Cham);
(3) a rural health centre at Mong- kolborey (Battambang).
Cement
These establishments are at present under construction by a Japanese firm and will possess from the start a Japanese staff of 24 persons, including three doctors and radiologists for the centre at Mongkol borey.
Under the Colombo Plan Japan is pro- viding five telecommunications experts, two veterinary surgeons, two teachers of the Japanese language for adults and one expert in the working of bamboo.
As a participant in the Mekong pro- ject, under the aegis of ECAFE, Japan has contributed to the preliminary studies and to preparation of the construction plan for the barrage projected at Prek Thnot, which is destined to provide ir- rigation for the neighbouring land and to produce electricity at low price.
The Japanese studies indicate that the cost of the Prek Thnot project will reach around US$13 million and the United States, France and Japan are reported to have reached agreement to put up US$7 million of this amount. The three coun-
-Japanese-Cambodian Trade-
1961
1962
Cambodian Imports
Iron and steel
Textiles
Elect. machinery
1,425
M/Tons US$'000 M/Tons US$'000
19,068 3,035 27,880 4,873 588 1,278 661 1,918 60,725 1,320
67,180
1,492 705
1,246
603
Motor vehicles
70
367
1,355
857
Paper products
1,552
433
2,602
796
Industrial machinery
834
987
644
734
Rubber tires
728
865
626
691
Glassware & Pottery
2,340
440
Others
5,118
Total
91,728
434 1,045
1,306 12,736
11.194 116,571 14,347
2,284
Cambodian Exports
Rubber
520
Rice
400
301 26
526
304
Maize
11,378
493
3,584
200
120
22
35,767
438
463 24,455
86
267
17
1
8
2
60
14
37
2
104
21 1,666
56
48,366 1,316 30,739
917
Kapok
Timber
Fish
Livestock
Others
Total
Source: Direction des Douanes & Régies.
Page 294
tries are said
to
have suggested also that of the remain- maining US$6 mil. lion, which must be provided in Riels for various engineering works on the spot, the Khmer Govern- ment should supply US$4 million, and FAO $2 million.
Another project, that of Sambor, studies for which were begun in Octo- ber 1961 but are not yet finished, will have four principal objectives: flood con- trol, electric power, water transport and
A irrigation. new agreement for econo- mic cooperation is talked of by which
FAR EASTERN ECONOMIC REW W
South Korea returns to a civilian form of government toward the end of this year, thereby making it difficult for the future Seoul Government even to maintan the the concessions already made on major issues separating the two coun-
tries.
en-
Japan, it is said, would offer Cam- bodia
loan a long term
of US$5 million The two countries also visage creation of a joint company for production and export of maize, for which Japan is the best customer. It is reported that ground has already been selected for cultivation of this crop.
There was at one time a project for the importation of Japanese farmers for the exploitation of land suitable only for cer- tain specialised crops, but the project had to be abandoned. Fourteen Japanese firms are represented in Cambodia by agencies or branch offices among which the best known, Sokecia, a joint Japanese Cambodian company for the extraction and export of timber, is the only one that has invested in Cambodia in the form of industrial plant.
A Metalled Road-bridge
The metalled
which road-bridge crosses the Tonle Sap and joins Phnom- penh to the peninsula of Chrrui Chang- war, whose completion is expected within the first half of next year, is being built by a Japanese firm. It will cost in the region of Riels 100 million.
Except for cheap cotton goods, whose colours tend to run with the first washing, all Japanese products are esteemed on the load market. Several exhibition rooms for the display of Japanese motor vehicles have been opened recently. Although heavy Japanese motor-cycles and buses have had considerable success at Bang- kok, at Phnompenh they can be counted on the fingers. Despite the growing im- portance of trade between the two coun- tries, there is so far no Japanese bank in Cambodia.
It is thought that the creation some time in the future of a free zone in the port of Sihanoukville will induce more Japanese firms to invest in Cambodia by setting up small factories destined to be rented or more important enterprises,
since the cost of labour is much the same in both countries.
October 31, 1963
Australia-Second Best Customer
From E. J. Donath, Melbourne SINCE THE mid-fifties Japanese-Austra- lian trade has increased remarkably; it has also become highly diversified. Both countries supply each other with food items, industrial raw materials, minerals, metals and manufactured goods; even capital investments in both countries have commenced.
Thus, the "vertical" trade consisting mainly of an exchange of wool and wheat with cotton textile, has changed into a "horizontal" trade, as is usually the case in the trade relations between highly developed economies.
In 1962-63, export of wool (mainly greasy, but also carbonised, washed, scoured and noils) amounted to LA 111 million, a little over 60% of Australia's total exports (compared with over 80% in the carly nineteen-fifties).
to
Likewise imports of Japanese textiles (yarns and piecegoods) amounted about LA 20 million in 1962-63, less than one-third of total Japanese imports (as compared with about two-thirds in the early fifties).
Last year, Australia's exports to Japan declined by 8% to £A 173 million whilst Japanese imports increased by about one-third to A 65 million (the same as in 1960-61).
Apart from wool (of which Japan bought about LA 3,500,000 less than in 1960-61), the most important export item was coal of which nearly £A 10 million worth (2,400,000 tons) were purchased by Japan; here, too, was a decline of nearly LA 3 million, or nearly 900,000 tons. Also, LA 303,000 worth of metallurgical coke were exported. It has been estimated that Australia's export of coal to Japan could treble by the end of this decade. Well over 90% of Australia's coal export goes to Japan.
The third most important export was wheat, of which £A 9,131,000 worth were exported (about 340,000 tons); here also was
a decline of about £A 2 million. Japan is Australia's third best wheat customer (after China and Bri- tain).
Next in importance is sugar at a value of over £A 8,400,000 (nearly 300,000 tons); a decade ago, Australia did not ex- port any sugar to Japan, and the value of the 1960-61 export amounted to only £3,300,000.
Last
year, Japan was Australia's second best sugar customer (after Bri- tain). Australian shipments to Japan have risen from 60,000 tons in 1954 (six per cent of total Japanese imports) to
275,000 tons in 1962 (twenty per cent of total sugar imports). Australia is likely to supply one-third of Japan's im- ports in 1964, according to a contract covering shipments until 1966-67; yearly shipments will range between 350,000 tons and 450,000 tons, or more, if requir ed and available and Japan might replace Britain as Our best sugar
customer.
Minerals and metals are a traditional export of which nearly A 15 million were exported.
The largest single item imported into Australia (amounting to nearly 10% of Japan's total exports) was printed piecegoods (including flock printed) not exceeding 36′′ in width (£A 6,100,000); dyed or coloured piecegoods (less than 52" in width) were very close with LA 5,900,000. The total value of all piece- goods imported was about
£20,000,000.
Early in August, 1963, a new Japan-Australia Trade Agreement was signed which, on the whole, follows the 1957 Agreement but with two im-
portant changes. Firstly, Japanese imports are put on the same footing as those from
other most-favoured nation countries-in other words, Australia has given up GATT's escape clause which
minatory entitled her to apply discri
restrictions on
Japanese imports.
Secondly, in future, Japan will be consulted on any items of which she is a major supplier before reference is made by the Australian Government to its Special Advisory Authority regarding Emergency Tariffs; the Japanese Government firmed that it would operate in seeing whether the need for temporary protection could be obviated by mea- sures taken in Japan.
con-
Co-
It is expected that Aus- tralian-Japanese trade will greatly expand in this decade since the two countries seem to be "natural" trade partners; Japan might replace Britain
RELIA
ELIABLE
as
Page 294
Australia's best customer in a year or two. Australia today is the second largest supplier of goods to Japan (after the
267
JAPAN INTO
AFFLUENCE'
A Special
U.S.), and Japan is Australia's third largest supplier (after Britain and the U.S.).
Australia is Japan's fourth best cus- tomer, and Japan is Australia's second best customer. Australia is the largest
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