MR HEYES announced that the Department of Trade and Customs was
preparing replies to the questionnaires submitted by the Japanese
delegates but that they would not be complete for about a
fortnight.

MR UYAMA referred to the programming of the present talks. He said
that it appeared that the Australian delegates would not be in a
position to give definite replies to Japanese requests before mid-
December and asked whether any concession granted could be
incorporated in the Australian import licensing program for the
January-March 1956 quarter.

MR HEYES explained that the restricted list of imports from Japan
had been established as the result of a Cabinet decision and could
only be changed by Cabinet. The Australian representatives would
take note of any requests the Japanese cared to make on these
items but it would be difficult to get a decision before January
because of the forthcoming elections.

MR UYAMA explained that the Japanese foreign exchange budget for
the October-March period was now being formulated and if it
appeared that his requests would receive favourable treatment in
Australia he might be able to obtain increased allocations of
funds for Australian goods. He explained that the allocations for
some goods had already been published but those for others had not
been released, and in these it might be possible to improve
Australia's position. He said, confidentially, that the Food
Agency had recently decided to purchase 10,000 tons of barley from
the Queensland Barley Board and had accepted tenders for the sale
of 28,000 tons of Australian wheat.

MR HEYES said that a 'reserved list' [2] had been established when
Japanese goods were assimilated into the general non-dollar
licensing system in late 1954 because many of the duties on
Japanese goods had not been considered by the Tariff Board since
before the war and in some cases, particularly where specific
rates applied, they bore no relation to present-day conditions.

Officials did not have the information necessary to advise the
Government on the strength of Japanese competition and it was
therefore necessary to adopt a cautious attitude. Australia was
closely watching the costs of imports now being received from
Japan and would continue to do so until it was possible to decide
what was an adequate level of protection against Japanese goods.

MR UYAMA asked when he could expect a reply on his proposals for a
barley purchase scheme.

MR MILLWOOD expected to have the answer ready by 9th November.

MR UYAMA then asked about his proposals for a commercial treaty.

MR HEYES replied that they had been sent to the Department of
External Affairs and he would contact Mr Shaw to ascertain what
progress had been made.

MR UYAMA said he expected to have the answers to Dr Westerman's
queries by late November or early December.

MR HEYES promised the replies to the questionnaires on Australian
customs and licensing matters in two or three weeks.

MR MILLWOOD then asked whether it was usual for the Japanese
licensing budgets to be implemented in a piecemeal fashion.

MR UYAMA said it was normal for allocations for various
commodities to be released at different times and he had received
no indications of any unusual delay in the October-March budget.

It would, however, be best not to waste time unnecessarily if
Australia wanted to share in any extra allocations which might be
available. He then asked some general questions regarding the
Australian import licensing system which were answered briefly by
Mr Robertson.

The meeting adjourned at 11.50 a.m. until a date to be fixed. [3]