Japanese Goods (Hansard, 19 March 1951)

Mr. H. Wilson

His Majesty's Government have for some years been collaborating with other Governments in promoting agreements to reduce trade barriers and so far as possible to eliminate discriminatory policies in international trade. His Majesty's Government do at present, in fact, extend the same treatment to Japanese trade as to the trade of countries that are parties to the General Agreement on Tariffs and Trade. Imports of goods from Japan into the United Kingdom are at present restricted for balance of payments reasons and in this respect also His Majesty's Government's policy towards Japan does not differ from the policy that may be adopted under the G.A.T.T. towards member countries with which the United Kingdom has balance of payments difficulties.

His Majesty's Government have carefully considered whether they could take the step of entering into a formal undertaking to continue in this way to extend most-favoured-nation treatment to Japan and they have decided that in all the circumstances they should not enter into such an obligation.

It is our desire to see Japan recover her economic health as rapidly as possible in order that she may cease to be a burden on the United States taxpayer, and that she may make an important contribution to the economic development of the countries of South and South-East Asia which we all desire. Since the war Japan's exports have not been sufficient even to pay for her present imports of food and raw materials. Japan must, therefore, develop her exports intensively in order to pay her way.

But it must be the paramount concern of His Majesty's Government to uphold the United Kingdom's vital economic interests and to maintain full employment, and His Majesty's Government must have regard to the quite special characteristics of the competition which was experienced 243W from Japan with damaging effects upon employment in United Kingdom industries before the war. In an expanding world economy it should be possible for Japan to achieve a reasonable standard of life for her people without any recurrence of such conditions. If, however, a situation were to arise in which it became necessary to impose special measures on trade with Japan, His Majesty's Government would be reluctant to impose the same measures on trade with other countries, as the most-favoured-nation provision would require. Unless and until such a situation does arise, His Majesty's Government will continue to accord to Japanese goods the benefit of the Most-Favoured-Nation tariff, but it would be unwise for us to tie our hands in any way until the future course of the Japanese economy and of Japanese commercial policies have become more clearly established.

I hope those in Japan who are concerned to bring about the restoration of the economy of their country will not fail to give earnest thought to the question of how Japan may foster the necessary confidence in her trading policies. I was pleased to observe the manner of the reception which the leaders of the Japanese Cotton Industry gave to the views of the Anglo-American Cotton Mission which visited Japan in May last. I am disposed to believe that such contacts between industries may have a useful part to play in bringing about necessary developments with the least possible damage to our vital economic interests and those of Japan.