Economic Affairs; Decline Explained Tokyo, July 12, One of the greatest difficulties with which Japan has to contend at present was discussed yesterday by the Japanese Minister for Economic Affairs, Mr. Seihin Ikeda, at a conference with the economic experts of the Japanese provincial administration, Mr. Ikeda stated that Japan's exports during the first five months of this year had declined by 35 per cent by comparison with the amount in the corresponding period of last year. In ihe five months in question Japan exported goods tó an aggregate value of Y.1,068,000,000 or eighteen per cent. less than in the same period last year.
In reality however the decline in foreign exchange proceeds obtained from exports and needed urgently by Japan for financing her imports of row materials for conducting warfare, was far greater. The Minister of Economic Affairs stated that in estimating the value of exports to countries of the "Yen block"—ie. the Kwantung territory, Manchoukuo and the parts of North and Central China controlled by the Japanese—the value of Japanese exports in the period named amounted to only Y.583,000,000 or 35 per cent. less than during the corresponding period of last year.
The decline of exports was attributed by Mr. Ikeda firstly to the difficulties of the Japanese export industries in obtaining enough raw materials, secondly to the high prices of Japanese goods, thirdly to the economic depression in the countries to which Japan is accustomed to export and fourthly to anti-Japanese sentiment in foreign—countries—
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