Memorandum on Japanese Lumber Tariff

By V. B. Greley, Secreary-Manager, Association.

It is well established by authentic reports that the recent Japanese lumber tariff is designed to discriminate a-gainst lumber imports from the United States in favor of competing woods impo4ted from the Russian Maritime Province. - This has been accomplished by a schedule of duties b4sed upon botanical species. The duties are very low on woods of the genus Abies (true firs or balsams), the genus Picea (spruce), the genus Pinus (all pines)' and the genus Larix (larches and tamaracks). On the other hand, the tariff schedules run very much heavier on woods of "other" botanical genera, including Douglas fir, hemlock and red and white cedar. In effect, therefore, there is a very heavy discrimination against the woods comprising the great bulk of the exports to Japan from the West Coast.

During the last five years, lumber and logs from the Russian Maritime Province has been imported into Japan in increasing quantities. In 1928 these imports reached a total of approximately 2lL million board feet, of which Kedar represented 75 per cent. This timber is cut intcr flitches, baby squares, boards and panels, and competes directly with Douglas fir, hemlock and the cedars from the West Coast of North America.

Available information indicates that 54 per cent of the Russian Maritime Province contains merchantable timber, to a total estimated at 1680 billion board feet. This includes 246 billion feet of Kedar, 741 billion feet of Yezo pine, Zffi billion feet of larch, and 433 billion feet of oak and walnut.

It is also authentically established that large Japanese commercial interests have secured very extensive concessions in the most favorable locations of the Russian Maritime Province for cutting and exporting timber; and that extensive plans are under way for greatly increasing the importation of these woods into Japan.

fn connection with the securing of these concessions, the plans under way for their development, and the adoption of the recent tariff,' it is noteworthy that a folder bearing the title "This Is the Kedar Ag"," was printed by Japanese lumber interests and distributed late in 1928 to the lumber dealers in Japan. This is a trade promotion publication, obviously designed to extend the use of Kedar ls a substitute for American lumber. For example, one of the subtitles in the leaflet is "From American Lumber to Kedar from the Mariti.me Province". The text under this sub-title asserts that Japan can obtain lumber from the West Coast of North America only for a few years before the supply will be exhausted. A iecond sub-tiile runs. "The Mari'time Province Kedar is the only Substitute for American Lumber"._ Th-e following text claims superior qualities for the woods of the Russian Maritime Province and develoos the large {uantities available. It asserts that Kedar cin be sup^plied at the rate of 600 million feet per year.

Other--paragraphs set forth the supeiioriiy of Kedar for pra_ctically all wood con-struction pu its cheapness I/rduLrcarry arr wooq purposes, tts and. a.iailability. The final paragraph is' headed ',,Use Kedar."

Kedar, being a wobd of the pine g'enus, has preferential duties under the new tariff; and the same is true of all the other woods comprising the vast forests of the Russian Maritime Province.

It is thus very evident that the,West Qoast lumber industry is up against a strongly organized plan, with powerful commercial interests behind it, to permanently destroy, or greatly reduce, American lumber and timber exports to Japan by substituting Asiatic woods; and that this program has been given tremendous impetus through the discrimination in the tariff schedules lately adopted by the Japanese government. That this plan will be successful is indicated by recent trade reports. During the first six months of L928, Kedar imports into Japan amounted to 11,847,000 board feet. During the first six months of l9D they amounted to 3OO59,000 board feet. The forecast for all of 19D, considering the usually heavy imports in the later part of the season, is l8O million board feet of Kedar.

This whole question has been recently discussed with men thoroughly informed both as to the situation in Japan and as to the attitude of the United States government. Diplomatic efforts have recently been renewed with the government of Japan for removing the discriminatory features of the present lumber tariff, on the ground that the present set-up by levying schedules on the basis of botanical species rather than commercial use is in fact discriminatory against the lumber products of the United States.

Paragraph 317 of. the present Tariff Act of the United States (Act of 1922) aathorizes the President, acting upon the recommendations and advice of the Tariff Commission. to deal with such situations. In efiect, it gives the President power to impose retaliatory duties on the products of foreign countries whose own tariffs discriminate against products of the United States.

Whether or not the State Department may be disposed, on its own initiative, to recommend action under thii section of the tariff law, in the event that diplomatic negotiations fail to remove the discriminatory features of the j^p^nese tariff, it is my belief that the West Coast lumber industry should actively assert its interest in this matter.

Resolution on Japanese Lumber Tariff Adopted at Tacoma, Washington, October 18, l92g

WHEREAS the tariff recently adopted by the Japanese government discriminates against lumber imports from the United States in favor of competing woods from the Russian Maritime Province by imposing' much heavier duties upon woods of the botanical species chiefly manufactured on the Pacific Coast than upon woods of the species produced in Maritime Russia: and

WHEREAS it appears beyond doubt that such discrimination in duties is designed to largelv promote the importa- tion into Japan of lumber manr-rfattured in the Russian

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Of Quality

THE MILLWORK INSTI. TUTE OF CALIFORNIA HAS PLACED ITS ENDORSE. MENT UPON THE QUATITY OF OUR PRODUCTS AFTER COMPLETE INVESTIGATIOI.I, AND AUTHORTZED THE USE OF THIS MARK ON OUR PRODUCTS.

There IS a difference You knon'-