Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/51

 from Tien (2) Actual situation of Obstacles to Smooth Trading with China For your reference, we describe hereunder the actual situation of present various obstacles to smooth trading with china which was viewed by a certain person who had been in China for over forty years engaging in Sino- Japanese trade before the war, and presently in Osaka folloning in the trade with Communist-China. There are at present a good many inquiries from the firms in the Communist district China deeiring to export not to mention such as salt, coal eto, those foodstuffs and raw materials badly needed in our country as rape seedB, cowhide, ramie, jute, crude goya beans, cotton seeds, sesame seeds, wool and pig bristle (inquiries coming mainly Tein), and expansion of trade is very prospective. But the first bottleneck to the promotion of the trade la that the system of dill settlement by means or Escrow L/O is being adopted. to purchase Japanese goods ana import then with the fund deposited in the Japanese side the goods they desire owing to a strict under the Escrow L/C, they are able to obtain export restriction on our side, and as a result busi- ness transactions apt to become one side trade. The Communist-China 18 employing, open account system in the case of import, and therefore 11 Japan also employs, this open account system as far as trade with communist-China is con- cerned, it would be a great help for the pro- motion of trade with them. at present the system of bill settlement by Escrow L/C is being employed, the other foreign nationals staying in Japan are re- selling the Escrow L/C and in a better position than Japanege in trading with com- munist-China. And the present trade with them is carried out in such an inconvenient and disadvantageous way a's utilizing the open account for settlement of bills thru Hongkong or Shanghai. In this case the . cont'a- 0151 RE'-0010