Australian Trade with Japan
1. When in Sydney last week I had lunch with Ray Bishop, of David
Jones Ltd. As you know, he has recently been in Japan where, among
other things, he was able to assess the availability of
manufactured goods.

2. Quite apart from his interest in Japanese goods as a retail
possibility(particularly fine china), Mr Bishop devoted some time
to the Japanese woollen textile industry (textiles being his own
particular forte).

3. As a result of 'moving in high places' in Japan, Mr Bishop was
impressed with the opinion often expressed to him that Japan's
imbalance of trade with Australia could not be allowed to continue
any longer. Not only was he informed that Japan would certainly
need to buy wool from other sources wherever possible, but that
her all-over consumption would have to be reduced in the face of
declining sterling funds. Due to the high proportion of wool
activity for domestic requirements, Mr Bishop thinks that Japan
could follow such a course with most adverse effects on her
Australian purchases.

4. Mr Bishop believes that Australia's name is suffering as a
result of our failure to view realistically the question of
imports of Japanese goods, particularly manufactured goods. He
suggests that even token quotas would do much to stem the present
adverse criticism now being voiced in Japan. Apparently other
countries (New Zealand for one) have liberalised their import
policies to permit of limited imports of manufactured goods, and
the resulting favourable publicity in Japan has been most marked.

5. Mr Bishop said he had discussed this subject with Sir Charles
Lloyd Jones [2] who is anxious to 'catch the ear of the PM'. Mr
Bishop suggested I mention this subject to you informally. He
indicated he would welcome the opportunity of expressing himself
quite fully if it would be of any value.