Japan and Latin America's Resources

Abstract

Once again Japan is in the midst of an intensive campaign to improve her trade with Latin Amer? ica. And once again her efforts in this direction have aroused expressions of loud concern in many quarters. Scarcely a week passes without reports of an oil deal in Mexico, an appeal for protection of domestic textiles in Ecuador, or a vague story of a Japanese trade mis? sion cropping up in Guatemala, San Jose or Caracas. There are several distinctive, though related, features in the present Japanese drive which were absent before the Sino-Japanese hostilities began to Japan Seeks throw the nation's economic life out of Supplies gear. For one thing, the European war and Washington's abrogation of the Japanese-American trade agreement last January have emphasized to Japan the danger of placing too much dependence on the United States and the British Em? pire as sources of raw materials and as markets for her own products. Until 1938 Japan's trade campaign in Latin America was merely part of an attempt to enjoy as much of the world's trade as she could in her era of phenomenal expansion, with primary stress on outlets for the cheaper wares. After the outbreak of actual warfare on the continent of Asia, imports became strate? gically more significant, and exports all the more vital as a source of foreign exchange. The yen-bloc areas (as will be shown in the forthcoming issue of this journal) have not yet been able to supply Japan with sufficient amounts of the essential raw materials so badly needed in the mother country; and, at the same time, the everrising share of the conquered areas on the mainland in Japan's export trade has been a leading factor in unbalancing Japan's foreign trade. Although Latin America has never played an impor? tant role in Japan's trade, so many of the raw materials which the latter needs, both for her wartime and peace? time industries, are produced in the countries south of the Rio Grande that it would seem an easy matter to expand this trade?particularly with the European war interrupting normal economic relationships between Europe and South America. Closer examination, how? ever, reveals that, quite apart from domestic difficulties in the Japanese scene, the much-desired results are not likely to be achieved in the immediate future. The same obstacles which prevented Japan from superseding the United States and Europe in Latin American trade in the thirties are still present. It is unnecessary to review the traditional orientation of Latin American economic life towards Europe and the United States. Nevertheless it should be noted here