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lower percentage of Japan's output in
the future. The Common Market
countries and Japan both have formi–
dable barriers and restrictions against
each other's exports.
Presently Africa and South America
have little to offer in the way of an
export market. They have raw materials
which Japan badly needs - but are too
poor to purchase enough linished prod–
ucts in return.
Both Canada and Australia sell much
more to Japan than they purchase from
her. lt will be sorne time before either
of these nations wiJl become more than
just a good supplier of raw materials.
Japan and the Communist
World
The last frontier for Japanese busi–
nessmen to invade is the
Commrmist
nations.
Presently they account for less
than 4% of Japan's sales abroad. How–
ever, mainland China was historically
one of Japan's best customers. Only
since the Communist takeover has there
been depressed trade between the two.
lt would seem only natural for these
two powerful countries to patch up
their quarrels and take up where they
left off before the war.
Trade between the two increased
rather remarkably last year, and Japan is
now supplying China with more prod–
ucts than any other nation.
lt
was esti–
mated that trade between the two
could total $825 million in 1970 - and
this trade may well increase in the
near future. Within a few years, the
China market could conceivably be
worth $7,000,000,000 or more annually.
With a possible thaw in relations since
the "ping pong diplomacy," Japan may
become much freer
politicatly
to trade
with Communist China.
This
is
especially true in light of
President Nixon's plan to undertake a
momentous trip to mainland China.
Hopefully, it will ease the open hostility
between the two powers and pave the
way for substantial trade between them.
Japan may profit trade-wise from this
política! thaw. However, President
Nixon has made it clear that the United
States will stand by its security treaty
with Taiwan and oppose expulsion of
Nationalist China. Therefore, Japan
must still waJk the tightrope in her
dealings with Peking and the Nationalist
regime of Chiang Kai-Shek.
Also, it will still be sorne time before
Red China could become a really im–
portant customer for products made in
Japan. Red China is still too economic–
aJly depressed to come anywhere near
being the large-volurne customer the
U. S. is right now.
Certainly Japan's officials must use
utmost diplomacy and wisdom in deal–
ing with the two feuding Chinese
governments.
Siberian Wealth to Japan?
Japan's trade with the Russian Com–
munist bloc of nations has increased in
the past decade. Still, the total volume
of trade is slight. Japanese imports from
the Soviet Union far exceed exports,
and as a result, Tokyo's balance of pay·
ments with the U.S.S.R. sbows a bil·
lion-dollar
deficit
over the past decade.
But Russia has something Japan
needs - raw materials.
Huge reservoirs of natural gas,
coking coa!, nickel and lurnber are
locked in the vast Siberian wilderness
and permafrost. Negotiations are in
progress now to aJlow Japan to develop
this mineral wealth. The resources are
15
actually closer to Tokyo than they are to
Moscow, and Japan is anxious to tap
this important supply.
Whether greater trade with the Com–
munist bloc will eventually expand
cannot yet be determined. lt would
seem, however, that Japan must begin
to make greater efforts to develop
friendship and trade with the Commu–
nists - European, Soviet and Chinese.
Military
Buildup
Another major consideration faced by
Japanese planners is the future military
security of the nation. The United $tates
has informed Japanese leaders that
they must take up a greater share
of the defense burden of Asia when
American forces pull out of Southeast
Asia.
Japan's air, naval and land "Self–
Defense Forces" are somewhat limited
but do have tremendous .firepower coro–
pared to World War
JI
armed units.
Japan's post-war constitution forbids
wars of aggression, but the components
of the Self-Defense Force can be ex–
panded as large as necessary for the
nation's security. The Air Self-Defense
Force already possesses sorne of the
most powerful military aircraft known.
Mainstay of thc ASDF, and sporting the
Rising Sun emblem, is the American
Lockheed F-104} .fighter built under
license in Japan by her own resurging
aircraft industry. And coming soon will
be the ultra-sophisticated F-4 Phantom
jets - also built in Japan.
Japan's military machine right now is
the
sixlh Jargesl
in the world and grow–
ing heftier aH the time. She now
produces her own medium tanks, is
enlarging her navy, and plans to spend
$15 billion in the next five years on her
military machine.
Japan has already developed rocket
potential and rumors persist that
defensive and strategic nuclear weapons
could be developed very quickly should
the need arise. Nuclear reactors for
peacetime use in power generation have
been around for sorne time in Japan.
Sorne Japanese leaders claim thc
nation needs greater power to protect
her worldwide interests, similar to Brit–
ain in her days of empire building.
Certainly Japan has as much right to
protect her interests in these far-ftung