FB. Mission Report: Competition of Japan: Better Quality of Her Goods:
Manchoukuo Prospects The conditions in Manchoukuo and standard in Japan is totally different the question whether British industry can ce-operate with local interests in The question for the future its development are discussed in the Will a standard of lite approximately report of the Mission to the Far East similar to that which existe to-day sent by the Federation of British In-continue to satisfy the workpeople of Japan, or will there be within The visit was paid in August and measurable time a serious rise in the lasted till November. Apart from in-cost of labour? Our own opinion is vestigation in Manchoukuo, another that as the industrial activities of abject was to establish contact with Japan develop, new desires will be representative organizations of Japan-created which will tend towards cee industry and commerce. The higher level of wages, but that this Mission, which was unofficial and non-process will be gradual and is not political, consisted of Lord Barnby, Ukely substantially to affect the com-Sir Charles Seligman, Mr. Guy petitive power of Japan for some Locoek, and Mr. Julian Piggott. years to come in normal cir Their report was summarized in "The cumstances. There are certain quite Times" of December 21, definite factors which operate in In Japan visits were pald to Tokyo, favour of the retention of low money wages in Japan."
Yokohama, Osaka, 'Kobe, "Nagoya, 'Although the conditions of factory and in Man: labour in Japan cannot compare with choukuo to Hisinking, Mukden, Anshan. the more expensive standard prevail-and Fushun. In' the Kwantung ing in Great Britain, it is a mistake, Leased Territory a short visit was the report says, to consider them Paid to Dairen and Port Arthur. a whole unsatisfactory from the point In pointing out that their con: of view of the Japanese "workman. clusions and observations are_neces-"The above remarks. both aa regards sarily of a general nature, the mem-wages and conditions of labour, refer bers of the Mission urge' that those to "the factory industries of Japan. Industries or firms which are serlous-We are well aware that in addition ly Interested in the possibilities of to the factories there is a large part the countries visited should send out of Japanese industry, especially' in directors or responsible representa-the lighter trades, which Is carried tives of their own to study the prob-fon in the homes of the people. We Jems from the point of view of had no opportunity of investigating the particular Industries they repre-this for ourselves, but we were Me sent: "We cannot urge too strongly formed that conditions in these home that this should be done, since com-industries are very far from satis paratively few responsible leaders of factory, and that they represent a British Industry have visited Japan factor' in Japanese economic life, free and Manchoukuo in recent years We from factory regulations, which tends believe that those prominent business to depress both the level of wages personalities who have done so will and the standard of life of the whole Support our view that such visits are economic organization." of definite value."
One advantage that Japanese industry has over British, it is re-'A Permanent Link marked, is that the per capita burden of public debt in Japan at present is In Japan the visitors found that "a extremely small compared with that genuine spirit of friendship existed." in Great Britain. Another cause They claim to have strengthened this whicn has contributed to Japanese favourable atmosphere by the form-industrial progress is the rapid spread tion of a permanent link between of rationalization and ce-operation the central organization representing in buying, manufacturing. and selling industry in Japan and Great Britain, After a conference between the Mis Improving Quality ion and prominent leaders of Japan-'The Mission observed not only an industry, commerce, and finance, increase in the actual power to pro-the following joint statement was isduce in Japan, tut a rise in the quality of her products. "Great at "As a result of cordial discussions tention," they say, "is being directed between leaders of Japanese industry at the present moment towards and commerce and the Britich "Tnproving quality as well as keeping dustrial Mission, it was agreed in down prices. We must place on rec principle that it is desirable to set up ord our belief that it would be un-Committees of the Japan Economic wise to assume that the future ex-Federation and of the Federation of port activities of Japan will be limited British Industries, in Tokyo and Lon-to cheap goods of low quality." don, respectively, In order to discuss Apart from the modernity of plant questions affecting the industrial and and organization, "Japan possesses Ju. commercial Interests of the two coun-her national spirit "a. great asset. flee, with a. view to arriving at a From early childhood every Japanese satisfactory solution, hag the principles of loyalty, dis-"Tt was. further agreed that the] cipline, and industry inculcated into him or her.... The Japanese Govern-Japan "Economic Federation and the ment plays a great part, both in the FBI. should be recommended to put direction and in the encouragement into practice a scheme of this nature of ndustry.... Certain basic in-without delay, "inthe interest of dustries have received remissions in mutually "beneficial trade. relations taxation. To certain new industries Datween Japan and Great Britain."
The outstanding problem in Japan Whlen it was desired to establish, temporary remissions or exemptions that of population. Agriculture, from taxation have been granted. says the report, offers no further field Pecuniary assistance, small. however, for employment since, broadly speal amount has been given towards ing, every suitable acre of land. is the formation of guilds and export already cultivated upon an intensive, asvosiations. Credit facilities at low sgeale, "Emigration, which would prorates o* interest have also been provide a remedy, does not seem pos-j vided by the Government. ible for various reasons. In the frsi place, a great deal of the territory! "the impression that Japanese industry is built up on a basis of sub-nitable for emigration Is not open! fies Is, we believe, incorrect. fo the Japanese. emigrant. In the Substantial subsidies have been second place, the Japanese are not by granted to agriculture in an enature desirous of emigrating. It is Henvoar to maintain prices which fad significant that there has. been very fallen toa Tevel which spelt ruin to Little emigration of Japanese labour to the "producer. Subsidies have also Korea, and it is highly unlikely that Neon ranted: to certain of the basic there will be at present any large-Industries, and to shipping. We could, scale emigration to Manchoukuo, however,' find. no. indication that heve subsidies were either so large Costs of Labour invamount or #9 widespread in dis-In these circumstances the Japanese tribution ax in themselves to explain Ihave definitely decided that the only' {he tareurable wanton of "Sapanese industry." But, the repo "ce owing population ry.
Bromect of finding work for, their "It remains to be seen whether this would point out that there are also nvavoursble factors in the position, policy will prove the solution, and in! which "may begin to operate. dett= particular whether their very effi-Tnentat'y sooner than many people in dency will not defeat the object they Tapan anticipate' have in view by the displacement of Unfavourable Factors man power through the machine. The Fit of the unfavourable factors fact remains, however, that in the mansioned by the Mission isthe posi opinion of the Japanese Government Ron o* the Japanese national finances and nation a further and intensive 'The "Budget isnot balanced, and Industrialization of Japan is the only Tipon, during recent years, has met possible policy open to them." heavy' annual Gefcits by borrowing On the question whether the success dlaproportionate amount of the of Japanese industry is due to the tional taxation is spear-on naval and level of wages and the conditions of Military requirements, The time must work, the report says:—"Japanese wages are low in terms chen it wil be decided that expen: tome. god the Minion alive soon of money as compared with those paid ture most be. met out of current In, say, Great Britain, It is, however, revenue, Japanese taxation is to-day not the money wages which count but Comparatively tow, but any consider the question whether the wages re-Sbie Increase, even, from 9 low level, eelyed enable the workman to satisfy will have repercussions upon" the his requirements and to live the life Industrial and social fabric. whic he desires. In considering the stan-will prove ® serious drawback to dard of life in Japan 3s compared Taponese "industrist expansion. with that of Western coifntries, there Japanese industry. is now operating one point above all which must very largely at maximum capacity.
borne in mind—namely, that the any increase is production will
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