Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-02-17

Distressing reports on Japans economic
situation, reflected particularly in a sharp
drop in cotton textile exports, serve to direct
attention again to one of the major postwar
problems in the Pacif1c-Asiatic area.
Japan is an overpopulated country Of IS
million people in land about the size of the
State of California. It has never, in modern
times, been self-suf1cient in food or raw ma
terials. Its economic strength Of the past was
based in highly organized industrial machine
with an abundant supply of diligent and skill
full workers, producing for export the goods
needed to pay for imports of food and raw
materials. It's hopes for economic revival rest
on these same factors
Japans principal problem today, as it was
before the war, is the finding Of markets for its
industrial production Historically, the Asiatic
mainland-easy of access thickly populated and
having relatively little industry of its own
answered the greater part of this need. During
the years Immediately preceding the Japanese
military adventure against North China in 1887,
China and Manchuria alone took about Is per
cent Of Japan's exports and furnished about is
per cent of the dollar value Of Japan'S raw
material imports. Before the outbreak of the
Korean war in 1850, this trade was beginning to
revive but with the exception Of certain "barter
deals" it has dried up seriously in the past two
the buying Of goods and services for the Korean
war, has helped but it obviously is not q
permanent answer.
Two other factors are hurting Japan seri-
ously in competing for world markets One is
that she has not yet been admitted to participa-
ton in the General Agreement on Tariffs and
Trade, a circumstance that permits tariff dis
elimination against her goods, particularly by
Britain and France and the areas which are
under their economic MISUNDERSTANDING large
parts of South and Southeast Asia where
Japanese trade would be most logical and
profitable. The other factor and this applies
particularly to the cotton textile trade, is the
intensity of British competition. AS Japan's
principal rival in this field, the United Kingdom
has announced cotton textile export goal for
this calendar year that would nearly double
the 1852 shipments. Much of this British trade
will be with the Commonwealth countries, with
South Africa and with the Communist
Asiatic countries where the discriminatory
tariff barriers can be applied to Japanese goods.
The Importance of the cotton textile trade
to Japan is shown by 1852 statistics. Exports OF
all categories last year had a value of SIPS
billion. Iron and steel products were the top
category at 1921 million but cotton textiles were
a close second at $244 million. The sharp cur
tailment that has set in this year is reflected in
the fact that cotton textile exports for the
first half of January, 1858, were valued at less
than one-quarter of the comparable 1852 figure.
Employment and production already have been
reduced accordingly.
Admission of Japan to the GAIT trading
community is one step that would help the
country's export-import position. Until the
natural market Of China and Manchuria is
again available, however, there appears no
normal and permanent cure for the economic
poor health of the island empire.