Your telegram 1276 and our 1151. Resumption of Private Trade with
Japan.

We are not disposed to sponsor further visits of businessmen to
Japan unless satisfied that they can purchase essential goods or
assist our export trade.

We are drastically curtailing dollar expenditure and exploring
every avenue to save further dollars. Our interest in imports from
Japan will be chiefly confined to cotton textiles and raw silk and
our importing licensing policy will be directed towards limiting
imports to essential goods not available from local or sterling
sources of supply. Japan is being treated for import licensing
purposes on the same basis as dollar areas and tightening of
controls on imports from these areas is in process.

Apart from wool for which special arrangements are being made
there is little that Australia can export at the present time. The
number of exporters seeking to visit Japan is consequently very
small and can easily be accommodated within the existing quota.

In the circumstances we are not interested in securing an
increased Australian quota for businessmen visiting Japan and in
fact would not regard very seriously a moderate reduction in
present quota.

As to length of stay we consider that in view of our limited
interests in the Japanese trade the period of three weeks at
present permitted, together with extension to meet shipping
schedules, is sufficient for traders to transact business.