Varying Opinions on Proposition to Increase Tariff on Imported Pig Iron sake, Dec. 31, The Japansse Government is con sidering to make the tariff all till higher for a number of important commodities such as iron, lumber, etc.
The Government is acting on the recommendations-of the Tariff commission on Commerce and Industry, but as there is strong opposition against the proposal, there is still hope for the defeat of the Government's plan.
Im the case of pig iron, they propose to increase the customs tariff from Yen 1.67 to Yen 11 per ton. The reason behind this drastic increase is the protection of the domestic industry. This protect is now extended in two ways: firstly by the tariff and, secondly by a bounty of Yen 6 per ton, The Government proposes to abolish bounty, and instead of it build a high tariff wall.
At present Indian pig-iron is imported for about Yen 40 per ton, while the cost of producing it in Japanese furnaces is Yen 51.00 per ton, It has, therefore, been urged upon the Government that the tariff must be as high as Yen 11 per ton to be really effective. However, those who oppose the proposal point out the following figures for the year 1926:—Tons Total consumption of pig iron 1,897,000 Domestic production '937,000
and say that the importation of the Imports 400,000 foreign pig iron is necessary.
On the other hand those who favour protection cite the official estimate of the Bureau of Mines, and give the following figures for the full annual capacity of the domestic furnaces:—
Yawata Iron Works 400,000 Other 11 Iron Works "1,000,000 From these figures they argue that the iron works in Japan sre quite able to take care of the do-mastic demand without foreign im. ports. Furthermore they point. out that the cost of production..at the Yawata Iron Works (Government owned and controlled) is about Yen 35 per ton, and declare that, there is room for reducing the cost of production in privately owned works, Pig iron was imported from India in 1926 to the extent of 240,000 tons, Ifa new tariff of Yen 11,00 per ton is levied, it will be sold: Japan at over Yen 50.00 per ton, enhanced price will enable amills owned by Mitaui, Mitsubishi Okura and the South Manchuria Railway to compete with the Indian article, "Those who are lined up against this proposed tariff are the con-somers of pig iron and the Japa mills. The latter is making Vigorous "representation to. the Tokyo Government, for India ian important outlet for Japanese cob-ton goods, and any "proposal 10, cheek the trade with India is 47 garded as unwise from. the nations find international. standpoint, Besides pig iron, the proposed' tariff includes the steel products," for which an increase in the Import duty from Yon 18.63 to Yen 95 por ton is contemplated.
On lumber a new tariff of 15°to 20 per cent, ad valorem is contem plated.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.