Evening star., 1940-02-04
japan Dependent on
American Supplies
By Frederic J. Hdskin.

CWoen tne UnlUeQ states ana Japan ere.
ates special interest In the trade between
the two countries. The treaty's ending
was forecast last July when the Wash
ington administration gave notice that
1t was tired Of Japan's freezing out
American business in Asia and shocked
by Japan's cruelties in an undeclared
war against China.
In recent years Japan has usually
ranked third in the trade of the United
States. behind Canada and the United
Kingdom. both as customer and as a
source of supplies, while, with the excep-
tion Of Manchuria (now Manchukuo).
the United States has been by far Japans
most important customer among indi-
vidual nations and the largest supplier
of equipment and raw materials needed
for her industries.
: In the last few years Japan has been
responsible hr approximately per cent
of the United States annual import trace
and per cent of its exports. The United
States, however, has regularly supplied
Japan with some "a per cent of her total
annual imports and purchased from 16 to
20 per cent of that country's total exports.
The importance of this mutual trade has
been felt by both countries for many
years.
Eliminating Japan's trade with areas
in China that have been forced to use
the yen as currency-Which is regarded
as domestic trade, since it is non-produc-
tive of foreign exchange-and consider
ing only trade with foreign currency
countries, the United States share in
the trade of Japan has been considerably
greater than percentages indicate. For
instance, in 1888 and during the first 10
months of 1889 the United States sup
piled nearly A per cent of Japan's i'm
ports from foreign currency countries,
while the United States bought 279 per
cent of Japans exports to those areas in
1888 and 1877 per cent in the 1o-month
period of 1889. No other foreign cur
rency country has approached the share
of the United States in Japan's foreign
trade.
Exports to the United States have con-
stituted an important source Of the for
eign exchange required by Japan to pur-
chase raw materials utilized in her in
dustries. The bulk of these export re-
turns has come from the demand in the
United States for Japan's raw silk, which
still amounts to a considerable sum. For
example, in 1888 Japan's raw silk exports
to the United States were valued at
s84, 100000, or about 10 per cent of her
fofo1 ovrortc fo tbic no1,pfry
There is reciprocation to these pur-
chases, for the United States has for
some years supplied Japan with approx
mately Sc per cent of that country's es-
sential requirements for its heavy indus
tries Japan normally depends upon the
United States for its industrial materials.
For example Japan imports from the
United States 40 per cent Of her raw cot
ton metals and wood pulp; 10 per cent
of her scrap iron and 95 per cent Of her
automobiles and parts. She also looks to
the United States for IS per cent of her
petroleum products and so per cent of
her machinery.
But while these percentages seem
large and are important to the trade of
both countries, demands by other coun-
tries for these materials may not vitality
affect this countrys foreign trade in the
event Japan should curtan or cease her
purchases Of these commodities in the
markets of the United States. STILL un-
der the cash-and-carry provision of the
Neutrality Act other countries engaged
in war may not always be dependable
purchasers Authorities of the United
States Department Of Commerce say that
it is anybodys guess as to what will
happen.
Translated into dollars, Japan's pur-
chases from the United States were
valued at s261 ,OO0, 900 in 1885, Purchases
from Germany amounted to only s49,-
900 and those from the United King
dom were valued at S18000,000.
In accordance with the 1889 Japanese
German trade agreement and the earlier
Manchukuo- German trade pact, 1t was
anticipated that Germany would supply
Japan and Manchukuo with machinery,
chemicals, vehicles and construction ma
terial in considerably larger volume than
in previous years. In exchange therefor
Germany was to receive certain japanese
items, but the bulk of payment was to be
made in Manchukuo's soybeans. The Eu-
ropean war has severely checked this
trade, causing reduced purchases by
Japan from Germany. the United King
dom, the Scandinavian countries, Can
ada and the Netherlands Indies. Japans
market in Germany was practically wiped
out as early as last October, while ship
ments to France from Germany have de-
clined more than rs per cent. They are
expected to decline further.
The European war has also, as con-
sequence, greatly intensified Japan's de-
pendence upon the United States. not
only as consumer of Japanese goods
but as a supplier of essential materials.
An examination of Japan's trade figures
for October, 1899, as compared with Au-
gust brings this out effectively. In Au-
gust the United States sold Japan 37.6
per cent of her total purchases from
abroad. In October, this country's share
rose to 43.7 per cent, with the net value
of imports from the United States in
creasing by 21.6 per cent, notwithstand-
ing IA per cent decline in the exchange
value of the yen in terms of the Amer
ican dollar Some of this gain is at
tributed to increased orders placed after
the announcement on July 27 that the
Ia ~ I>oo oh tal