"The agreement now expiring was one contracted solely between Japan and India, but this time the Indian Government will have the recently concluded Anglo-Indian Trade Agreement to take into consideration. Delhi is well aware of the fact that Japan is not in a position to lake a strong stand, or to suggest any action such as the boycotting of Indian cotton and, therefore, the Indian Government is expected to be unyielding. As it is, Delhi has apparently not yet taken any action at all to provide for a renewal of the agreement.
"The trouble is that Japanese exporters have glutted the Indian market with heavy shipments of unduly low-quality cotton yarn and cloth since the adoption of the barter system between the two countries, and while Japanese exporters were motivated by the desire to secure the right to import Indian cotton, the result has been that the Indian markets are now overstocked with such low quality yarns and cloths.
he only solution, now, therefore, is for Japanese traders to concentrate on exports of high class cotton cloth, especially prints. Although under the existing customs tariff rates in India, Japanese printed cotton cloth is subjected to a 10 per cent, over duty compared with British goods, it is possible, in my opinion, for Japanese goods to compete with Lancashire."—Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.