Show Between You and Me Coast Likes Hulls Hull's Trade Policy Japans Japan's Japans Exports Exports Ex Ex- Ex- Ex ports Controlled by Guilds N I f By RAYMOND CLAPPER SAN FRANCISCO Business on the Pacific coast as 88 Inmost Inmost in inmost most other localities arc critical of ot the administration as a whole But Secretary of State Hulls Hull's reciprocal reciprocal re reciprocal re- re trade policy finds a good deal of support The Pacific coast is ls Japanese Japanese- conscious It feels fees very close to Japan geographically and of ot course it has had the Japanese immigration problem and the alien aUen land owner problem in its lap for tor many years yearl Here Hero too the United States fleet leet is based This is the jumping off oft point for tor Hawaii the key kuy to the Pacific de de- de I What does the west coast business man think about Japan 1 Here is a generalized view from sources that ought to be competent compe compe- tent Japan Is buying more from us than we buy buy from them The trade trado is complementary rather than competitive For instance we sell seU our raw cotton and b buy y Japans Japan's silk Both commodities are arc mutually duty free tree There Thero is considerable political play to the voters voter's Japanese anti prejudice The business man who takes a 11 larger view of or national and international trade problems has hag no sympathy with the belt bell belief t f that war with Japan is inevitable He regards it a bogey fanned up by politicians looking for easy votes As the business business' m mans man's ns attitude is reflected h here ho has no in interest interest in- in terest in trying to hold Jap Japan n back in Asia Asian If Japan wants a Monroe doctrine doctrin in Asia JIl like c we have in the tho western hemisphere its it's all right with him He doesn't pa pay any attention to the flag ing speeches speech s. s On the other hand the tho coast business man if he lie has any In International International international In- In trade trado interests direct director or 01 indirect is interested In reciprocal reciprocal re re- trade development He takes the position that any agreements agreements agree agree- ments entered into will wUl have been preceded by the th most careful study and that California or American interests as 1 a whole will not be hurt Exporters hero feel teel that California has much more to gain than to lose b by development of reciprocal trade agreements al although at- at though actually Secretary Hulls Hull's program has had perhaps heavier criticism from California than from any other section The clash here in California is between specialty crops such as citrus fruits and nuts which de demand demand demand de- de mand prohibitive tariffs and the mercantile trade which sees that international exchange of goods can exist only by buying abroad as well as selling The Institute of Pacific Relations Relations Rela Rela- In Inia a statistical 1 study of cotton cot cot cotton ton says Japan is Is' the largest loreign foreign for lor- eign consumer of ot American cotton cotton cot cotton ton now One-half One of or t to o raw material from which Japanese nese textiles textiles textiles tex tex- tiles arc are made corner come from American American American Amer Amer- ican cotton fields From 1931 to 1934 the decline in American America exports exports ex ex- ports of cotton manufactured goods only in part due to Japanese Japanese Japanese Japa Japa- nese competition was But the increase in exports of ot raw cotton to Japan in th the same period was In other words expansion of oC Japanese cotton textile textile textile tex tex- tile exports has on balance helped American export trade more than It has hurt It it the institute economists economists economists econ econ- conclude So that on on the west coast the ther r rage ge of or New England textile manufacturers manufacturers manufacturers man man- over Japanese imports is not taken seriously One business busi busi- ness man said t that at those Now New England England England En En- gland mills milts which are complaining complain complain- ing most loudly already had lost their business to southern mills and had been in ln n trouble for tor years before bUon they began raising the tho cry about Japanese imports Of or course it must be taken Into account account account ac ac- ac- ac count that Pacific shipping is a abig abig big activity on the coast and that like Ilke the stock ck market broker the prospers when whon there Is heavy trading and he doesn't care who is buying or who is selling However one ono development in Japan has recently gone a considerable consid consid- erable crable distance toward winning friendlier feeling among American Ameri Amen can business interests That is Japans Japan's attempt to control contrI l her exports ex cx- ports in instances like the gentleman's gentleman's gentleman's gentle gentle- mans man's agreement t limiting textile exports to the Philippines and the earlier voluntary export quotas quotas quotas quo quo- tas adopted by Japan on cotton ru rugs s and lead pencils to this coun coun coun- try Japan has developed a sort of Japanese N R A. A Forced by threat of having her goods good roughly excluded excluded ex ex- eluded by tor foreign ign countries duo due duoto duoto to the cutthroat competition of at small mall Japanese busin business ess men who flooded every every possible market r recklessly the Japanese government government government govern govern- ment has tal taken en control of ot the situation and set act et up an an extensive export guild system This will enable enable enable en en- able her to to regulate her export trade and avoid ar arousing foreign t antagonisms which in the last Jast years have become menacing to Japanese trade trado Interests Interests' r sti in the thelong thelong thelong long run In 1933 there were 35 export guilds in Sn Japan Now there are 7 74 composed of export firms Recently the guild law has been amended to give the Japanese government government government gov gov- control over the volume and direction of the country's foreign for for- eign trade with national nation al interest and exports are being controlled to meet objections abroad particularly from the United States and Great Britain X r These guilds or guilds or trade associations have compulsory control con control control con con- over volume price and qua quality ity of exportable products Guilds can enforce requirements on members members mem- mem mem mem- bers and the government is empowered empowered em em- powered to act against nonmember nonmember ber her chiselers Voluntary c cooperation cooperation p a- a tion tried tiled earlier In- In was found In adequate This development in Japan paralleling par par- our own wn N R A experience experience ence in a sense is another nother evidence evidence evi evi- dence of the tendency away from m automatic competition a and d rugged individualism in intern international Uon l trade and toward integration of foreign trade under government control In Japans Japan's case it may within a short time c considerably ease trade trado tensions which have I grown up around her in all aU Footnote There 1 Is no supreme court in Japan to the export guilds and put the for for- ward-looking ward Japanese back to the man-drawn man age ge 0 I Copyright 1935 Washington Post |