119 Informal Trade Talks: Initial Statement By Uyama 
It is gratifying to note that trade between Japan and Australia
improved to a certain degree during the last fiscal year. There
are various reasons to believe that this tendency of improvement
can be further strengthened, and, indeed, there is a common desire
on both sides to see trade between our two countries expanded to
the greatest possible extent.
We are, therefore, very much pleased to be able to enter into
talks with you, Gentlemen, representing the Departments primarily
concerned, to examine mutual trade problems.
It has been agreed upon to conduct the present talks on an
informal and purely exploratory basis. There are a great number of
problems involved in this field of trade. Unfortunately, however,
many of them have not been fully discussed between our two
Governments so far. Therefore it is appropriate to explore the
possibility of expanding trade by means of informal discussions on
Probably, some of them will be satisfactorily done away with in
the course of informal talks, but there may be such problems that
require more formal negotiation. At any rate, we wish to cover all
the relevant fields so that both Governments will henceforth be
able to take effective and constructive steps with a clearer
I am confident that, through a full and frank exchange of views,
we shall be able to achieve a wider range of agreement on measures
to be taken for the promotion of our mutual trade. Accordingly, we
shall be quite frank in presenting our views and also try to give
you as much information as possible as you may wish to have with
regard to our trade policies and administrative measures. We hope
your side will also be prepared to do the same.
Now, allow me to touch upon, briefly, the items proposed from our
side for discussion.
(1) Application of GATT provisions to trade relations between
Japan and Australia
We are grateful for the support the Australian Government extended
to Japan's application for the accession to the General Agreement
on Tariffs and Trade. At the same time, however, we have to
express our deep disappointment about the fact that the Government
of Australia chose to invoke Article XXXV of the Agreement.
I trust the position of the Japanese Government is clearly
presented in the statement transmitted to the other member
countries, through the GATT Secretariat, on the 7th of this month.
We are not unaware of the apprehensions on the part of the
Australian Government with regard to possible undesirable effects
to be inflicted on the Australian industries in case of an
abnormal influx of Japanese goods in domestic markets.
In this connection there are already the provisions of Article XIX
of the General Agreement for protective measures applicable in
emergency cases, and in order to supplement these provisions
efforts are being made to introduce a new interpretation with
regard to Article XXIII, paragraph 1(c) to be established as an
We earnestly hope that the Australian Government will find these
as sufficient safeguards to eliminate the above-mentioned
apprehensions and cease to invoke Article XXXV in regard to the
trading relations with Japan at an early date.
If there are other reasons for further apprehensions, we should
like to request that the Australian representatives will be good
enough to give us an explanation about them.
(2) Matters to be dealt with usually in a Treaty of Friendship,
Commerce and Navigation
It has been customary for the Japanese Government to conclude
Treaties of Friendship, Commerce and Navigation with other
countries, in order to place its international trading relations
on a stable basis. This practice has been regarded as very
suitable not only by the Japanese Government but also by our
business people. It is therefore requested that the policy of the
Australian Government will be indicated on this matter in the
course of the present talks.
Under a Treaty of Friendship, Commerce and Navigation, the
following problems are usually stipulated:
Entry, stay, travelling and residence; Establishment of companies;
Protection of persons and property; Judicial rights; Business
activities; Property rights; Internal taxation; Prevention of
double taxation; Social security; Foreign exchange control;
Customs tariff; Entry of goods; Customs administration; Internal
treatment of goods; Commercial travellers; Freedom of commerce and
navigation; Treatment of ships; Consular convention matters;
Transit of persons and goods; Industrial property rights.
At present, there are provisions of Article XII in the Treaty of
Peace between Japan and the Allied Powers signed at San Francisco
in 1951. However, these provisions will cease to be effective next
April.  Therefore, it is deemed necessary to enter into a
treaty on these matters.
In case the Australian Government is not yet prepared to enter
into such a treaty or agreement with Japan, we wish to take up the
individual problems mentioned above.
For instance, under the present circumstances, Australian
businessmen are allowed to enter, stay, travel and reside,
together with their families, in Japan on an equal basis with
other foreign nationals. These Australian nationals are being
treated without any discrimination. On the other hand, Japanese
businessmen are not accorded the same treatment in this country at
present. These people are allowed to come to this country to
engage in a very limited field of commercial activities for a
limited period. Their families are not allowed to accompany them.
Therefore, their status while in this country is uncertain and not
suitable for the carrying on of their business in the field of
trade between this country and Japan. Accordingly, I should like
to request that prompt action be taken to remedy this situation.
(3) Other measures to be taken for the promotion of trade between
Japan and Australia
As I mentioned before, the trade between Japan and Australia,
since its resumption after the end of the war, has undergone a
steady and remarkable expansion, and now Japan is the third best
customer for Australian products, her purchase in the past fiscal
year being 58.5 million pounds, while Australia's purchases from
Japan last year reached 18.4 million pounds.
Nobody can entertain any doubt on the fact that the trade between
the two countries is largely complementary, and this trade
pattern, we believe, will remain unchanged in the foreseeable
International trade, which is essentially a two-way undertaking
between the two countries concerned, can be developed more
satisfactorily if the trade is carried out on a balanced basis.
Our past experiences clearly indicate that the more balanced it is
on a fair and equitable basis, the better the results we can
expect from it. Therefore, it is earnestly desired that Australian
purchases of Japanese goods be increased so as to make the trade
imbalance between the two countries at least much smaller than it
Accordingly, we wish to take up in the present trade talks the
discriminatory restrictions on the importation of a certain number
of Japanese goods specified in the Reserved List. From the
viewpoint of protecting Australian industries, not only Japanese
products but also any imports from any country can be equally
harmful in case of an abnormal influx in domestic markets. We
cannot see the reason, therefore, why such discrimination is being
imposed only on Japanese products.
There may be some other problems the Australian representatives
wish to take up. We shall be quite ready to discuss those matters
And thus, we sincerely hope, the present talks, though informal
and purely exploratory, will prove to be most constructive and
profitable for the promotion of our mutual trade.
[AA : A1838/278, 3103/10/2, iii]