Government Measures to be Taken to Meet Japanese Competition: Mr. Runciman's Statement London, May 7. FEASURES to protect the British cotton and rayon industries against Japanese competition in the home and Colonial markets were announced in the House of Commons to-day by the President of the Board of Trade, Mr. Walter Runciman, In a long'statement, Mr. Runciman recalled that, after the textile representatives of the two countries had failed to reach an agreement, the whole position was under review between the two governments. On March 16, he handed the Japanese Ambassador a memorandum inquiring. whether his Government had any proposals to make for dealing with the problem, On March 31, he received a reply in which the Japanese Government expressed willingness to consider any further proposals which the British Government might make, but making no proposals of their own.
"The Government," said Mr. Runciman, "have considered the whole problem again very carefully in the light of this reply. It is already a year since the British Government drew the attention of the Japanese Government to the serious position arising from Japanese competition. It is of the utmost importance that every effort should be made to deal with a problem of this magnitude in the most appropriate way.
Unfortunately, continued Mr. Runelman, there appeared to be nothing in the Japanese Government's Note. of March "31 to suggest that an early agreement was to be expected. Although, therefore, the Government still hold the view that the problem which faces us is one which can only de settled satisfactorily by cooperation in some form between Japan and ourselves, the British Government cannot allow a situation to develop. in which negotiations are protracted" indefinitely without any Immediate prospect of success and, during this time, the Japanese, quite haturaily {rom their point of view, are continuously expanding their exports our markets to the detriment of Lancashire while our hands are tied.
Accordingly, the Government ha come to the conclusion that they Would not be justified any longer in postponing, in the hope of an agree ment, such action as is open to them with a view to safecaarding British trade, I therefore informed the Japanese Ambassador last Thursday hat, in the circumstances, the British Government were obliged to resume their Iberty to take such action as they deemed necessary to safeguard our commercial interests. T assured him, and Tam confident the House will join me in this, that such steps it was proposed fo take would be taken' in no unfriendly spirit"
No Reason to End Treaty As. regards the Anglo-Japanese Treaty, Mr. Runciman said he was satisfied that the Government could, without denouncing it, take proper and suficlent measures to, protect British commercial interests. He therefore saw no reason, to terminal the treaty which had regulated commercial relations between the two countries for over twenty years. AS far as the United Kingdom market was concerned, the Government felt they could no longer continue to suspend a review of the sill duties by the Import Duties Advisory Committee, which had now been asked by the Chancellor of the Exchequer to complete its report on these duties as quickly as possible.
"in the ease of the Colonial markets, the Secretary of State for the Colonies had been. in consultation with the Colonial Governors. The. governments of the Colonies and Protector-fates for which such action would be appropriate would be asked to introduce import quotas which, except in the case of West Africa, would apply to all foreign imports of cotton and rayon goods, With a view to reinstating Britain the position in those markets which the held before the present abnormal period, it was intended that the basis for apportioning these quotas as between foreign countries should be, as far as possible, an average of their imports in the years 1927-1031.
Text read from the printed page and cleaned; old type leaves the occasional error.