Evening star., 1934-05-06
JAPAN SEES j. s.
TRADE HARMONY
Holds Relations Too Salts
factory for Crisis to Be
Threatened.
BY the Associated Press.

BY the Associated Press.
TOXIC, May 5.-C0nfdenCe that
are too satisfactory" to reach crisis
like that menacing the commerce of
Great Britain and Japan was ex-
pressed tonight by foreign Office OFF,
cialS.
They cited facts-including figures
showing that the United States and
Japan have been each others leading
customer for a generation-to sup
port their conviction that trade of the
two nations is so important and sat
1Sfactory' that both must be anxious
to maintain the present status.
Prepare for Trade War.
simultaneously it was officially in
dicated that Japan, confident of her
position, is preparing for a threatened
trade war with Great Britain as a
result of London's warning that
Britain will take action to protect the
empires textile export interests
against increasing Japanese competi-
ton.
Trade leaders, apparently not at all
concerned over the exchanges be-
tween japanese Ambassador Matsu-
daira and Walter Runciman. presi-
dent OF the British Board of Trade.
In London this week, pointed to
Japan's trade protection act enabling
Toxic to raise or lower tariffs or limit
and prohibit imports.
Foreign Office attaches expressed
the belief that Japan's recent gains
IN Latin American markets would pro-
duce no serious conflict between Amer
lean and Japanese interests.
Bargaining Powers in Mind.
In this connection they had in
mind legislative measures before each
government designed to place in the
hands OF the executive branch tariff
bargaining powers.
The conviction also was expressed
in face of an uneasiness, apparent
IN late months. lest Japan and the
United States in brandishing any new
trade weapons at other countries NAV
more or less inadvertently turn them
against one another.
Two other factors cloud the horizon.
Japan, In efforts to put on an armor
o. economic elf-sufficiency, has
threatened American interests with
proposed petroleum control bill
Whlch may damage interests of Amer
lean oil companies in Japan.
Concerned About Tariff.
Japanese industrialists also have
been nervous about the application of
American tariff moves to their prod
ucts.
The japanese finance ministrv's
1883 returns show that Americas fig
ures were more than double those of
the next nation in both the import
and export columns of Japanese for
eign trade
Diplomatic and commercial officials
OF Japan and the United States. il is
recalled, recently said that the hest
help Japanese American trade could
get would be minimum of official
interference
Another aspect of the situation is
contained in report of vernacular
newspapers that negotiations are
nearing completion whereby the Ja
pan Industry Co., a wealthy invest
ment and holding concern, would ac-
quire SO per cent of the stock of the
General Motors of Japan. Ltd. a sub
sldlary of the American General Mo-
tors Corporation.
Absorption Tendency Seen.
Business men were of the opinion
generally that the deal gives evidence
OF an increasing tendency by japanese
to absorb foreign enterprises in Japan.
Foreign Minister Koki Hirota, mean
while, was believed to have thrown
down the gantlet to Great Britain
when he said
Our country is confronted every-
where by difficulties in foreign trade.
1t found it necessary to institute trade
control to safeguard our foreign COM
merce
I'VE must strive under all circum-
stances to safeguard and promote our
foreign trade"
Furthermore, industrialists vouch-
safed the opinion that even if Great
Britain imposes quotas on Japanese
goods Japan will not be seriously hurt
and that the Toxic government would
be able to make telling reprisals.