ANZCCJ History |
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Foundations of the Chamber The following recollections of the foundations of the Chamber were kindly documented by Mr Ted Weatherstone, founding Chairman of the Australian and New Zealand Chamber of Commerce in Japan. As many of you will know the Chamber had it foundation in 1972. I should warn our New Zealand members what I have to say about the early history of the Chamber relates only to the involvement of Australian businessmen in Japan. However, they should not feel neglected. In the 1960s there were very few Australian companies resident in Japan. They included Alliance Industries and shippers owned by the Duncan Family and headed in Japan by Roy Duncan, Duval and Company, owned and headed in Japan by Frank (later Sir Frank) Duval, I.H. McDonald and Co owned and headed in Japan by Ian McDonald and Qantas Airways. The General Trading Company Scott and English also had strong representation in Japan initially by John Galvin and Stanley Smith owners of the company. From 1948 and 1949 John Winterflood and David Belton joined the company in Tokyo. The Australian business community began to expand to such an extent that in 1969 arrangements were made to establish a very informal Committee of the representatives of Alliance Industry and Shippers, I.H. McDonald and Co and Dubar Trading, a subsidiary of Duval and Co of which I was a Director and representative in Tokyo. Each of the representatives agreed to offer assistance by way of advice to any Australian Company intending to open an office in Tokyo. This advice would be based on the experiences each of the businesses involved had in operating in Japan and would concentrate on such matters as:
By the early 1970s there were sufficient Australian businessmen in Japan to consider establishing a Chamber and preparations for this were begun, by discussing the basic requirements under Japanese Law with Richard Rabinowitz of Rabinowitz Mori and Anderson. Rabinowitz spoke fluent Japanese and had been an active member of the legal fraternity in Japan for many years. There was a great deal of support from the Australian business community and also from the Trade Department representative in the Embassy, Mr Bill Cairns. In its infancy a minor problem arose over those who were inclined to think the Chamber's main function would be a social one. This was quickly overcome by pointing out that the Australia Society and Australia – Japan Society fulfilled this role and therefore the Chamber should devote its attention to commercial matters and any other matter that concerned the Australian business community. A General Meeting of Members elected an Executive Council, which on 6 June 1972 elected me as Chairman. By 30 June 1972, three main sub-committees of the Executive had been established. They were Legal, Programme and Membership sub-committees. These routine matters are mentioned because the Legal Sub-committee played the next important role in the establishment of the Chamber. The Legal Sub-committee considered what procedures were required to formally register and officially establish an Australian Chamber of Commerce in Japan. Briefly the procedure required the Chamber to obtain from MITI permission to form a chamber and to use the title “The Australian Chamber of Commerce in Japan” and to have this title registered by MITI. An application was drafted and subject to the advice of its legal advisor the Executive Council met and agreed that an application to this end should be lodged with MITI as soon as possible. At a subsequent general meeting the Chairman of the Executive Council passed on the following advice from the Legal advisor:
In addition to the three existing sub-committees, the Executive considered the need for a Committee to examine the scope of the Chamber’s relationship with other Chambers in Japan and other institutions such as the Economic committee established by the Yomiuri Shinbun. In considering this aspect of the Chamber’s activities the Executive Council was mindful of the responsibilities of the Chamber in its presentation of views and opinions to such organisations and decided that there was a need for such a Committee and that it should coopt the services of members of the Chamber, as required, to consider in particular whether the Chamber should express any opinion and if so to recommend the basic line of such opinion so that the interests of all Chamber members are taken into account. The establishment of the Chamber was not easy to achieve alone and the most sympathetic and helpful cooperation was received from a number of individuals and organisations who gave the benefit of their knowledge and experience in Japan during the time the Chamber was being formed. This included practical assistance by the American and British Chambers, which had been operating in Japan for some years. Our American friends had one request of us – they asked if we would refrain from using the ACCIJ abbreviation publicly as it could be confused with the American Chamber of Commerce in Japan (ACCIJ). Some of the problems involving the procedures in Japan that had to be overcome are indicated in the following exchange of letters with the Legal advisor, Richard Rabinowitz in October 1972 relating to the application that had been lodged to register the name of the Chamber with the Ministry of International Trade and Industry (MITI).
The David to whom Mr Rabinowitz's letter was addressed was David Worland of Travelodge who had taken on the duties of Secretary. In response I wrote to Mr Rabinowitz in the following terms on 5 October 1972.
Apart from B-29s, at this stage I had come to agree with a Frenchman who 160 years ago was very disenchanted with politics and roundly criticised Governments –
A bit strong perhaps, but somehow applicable to many governments. Our application was finally approved on 18 October 1972 and I was asked to call on the Chief of the Bureau responsible in MITI for foreign business activities to receive the formal approval. As the Secretary and I entered his office the Bureau Chief donned his jacket and formally handed over the authority with the comment that he hoped the Australian Chamber would not take on a lobbying role as then being conducted by the American Chamber. In addition he hoped the Australian business community would not split up and seek to establish more than one Chamber. I had nothing to say to the second comment and in respect of the first said that the Australian Chamber of Commerce in Japan would act in accordance with the general practice of the other international Chambers including the Japanese Chambers established in Australia in Sydney and Melbourne. The authority to establish the Chamber included the requirement that the Chamber submit an official report annually of the Chamber's activities and financial state. With this formal approval, the desire of the Australian business community to establish a formal collective identity in Japan was at last realised. In its early days members of the Chamber had little involvement in the sensitive trade issues that concerned the American Chamber in particular. In most cases Australian companies would have benefited by the strong lobbying activities by the American Chamber especially where liberalisation of Japan's import trade was concerned. The sort of problems that continually affected Australia in those days as today were those concerned with access to markets for Agricultural products and in this respect the Australian Government, through the various marketing Boards for meat and livestock, fruit and other Government sponsored Boards was very active. In 1978 for example the representatives in Japan of the Australian Wheat Board, Australian Wool Corporation, the Meat and Livestock Corporation and through its agent Alliance Industries and Shippers, the Australian Barley Board were members of the Chamber. By 1978 major Australian companies with representatives in Japan and who had become members of the Chamber included BHP Nominees, Conzinc Rio Tinto, The Bank of New South Wales, Duval and Co., Travelodge, National Bank of Australia, Heine Bros, Price Waterhouse, Qantas, TAA, Civil and Civic, Ansett Airlines, Commercial Bank of Sydney, ANL and CSR. The interests of other major Australian companies such as Western Mining Corporation, ALCOA of Australia, and iron ore and coal producers were in most cases represented by Australian companies in Japan acting as their agents. Membership of the Chamber was initially confined to Australian companies and their representatives in Japan. This raised questions as to whether Japanese Trading Houses acting as agents for a variety of Australian companies should be considered for membership. The argument in favour took into account the role of the major Japanese Trading Companies, Mitsui, C. Itoh, Mitsubishi, Sumitomo, Nissho Iwai, Kanematsu-Gosho, Toyomenka and others who acted as agents in Japan for the importation of Australian products. It was generally agreed that in its early days anyway, the Chamber should confine its activities to involvement of Australian Companies only. This became a basic consideration when, because the main trade problems with Japan were political and in this respect in its own interest, the Chamber would support whatever activity the Australian Government might undertake to overcome these problems, the Chamber should concentrate on keeping itself aware of what the Government and Industry were doing by meeting with as many official visitors to Japan as possible. At the same time it was decided that whenever possible the Chamber would make itself available to such visitors in the form of round table discussions in order that they could benefit from the experience and knowledge of its members. The first official function of the Chamber was held on 2 November 1972. It was a luncheon, attended by members and their guests in honour of Sir John McEwen who had retired from the Parliament earlier in the year. It was entirely appropriate that the Chamber should have as its first guest of honour, the Australian political leader most responsible for establishing the basis on which Australian trade and commercial relations with Japan had so remarkably developed following the conclusion of the Commercial Agreement with Japan in 1957. In the early days of the Chamber Japan was a very popular place for visits by political leaders and senior Government officials. It was a time when many of Australia's interests were the subject of continuous discussions between representatives of Australia and Japan, mostly in Japan. One of the most appreciative politicians the Chamber met early on was Mr Ian Sinclair, Minister for Primary Industries. Due to time restraints the meeting was informal and took place on 9 June 1972 before the establishment of the Chamber had been sanctioned by the Japanese Government. In his comments Mr Sinclair had the following to say about the Chamber:
Due to its membership being confined to Australian representatives and companies, many of our official guests felt free to discuss more openly the problems Australia faced in its trade relations with Japan and other Asian counties. The most important visitors from the Australian political Government included Ministers who were often and more recently obliged to address the National Press Club. They were therefore able to obtain some reaction from the Chamber as to what they might say at the Press Club. In the Chairman's report to the 5th Annual General Meeting of the Chamber on 28 July 1977 it was noted
In addition the Chairman of the Prime Minister’s ad-hoc Committee on Australia – Japan relations Mr S.B. Myers wrote to the Chairman –
The Executive felt from time to time that the Chamber had not been able to take full advantage of the visits to Japan of Australian business leaders due to short notice and time restrictions involved in such visits. It therefore decided to create an ad-hoc working group which could more easily be called at short notice to meet these business leaders. The Chamber’s interests and involvement began to expand significantly in 1974 and in 1973 and 1974 the Ad-hoc Working Group met with members of the Export Development Council Trade survey mission led by Mr R.T. Madigan, members of the Western Australian Commercial and Industry Trade Mission, Mr Doug Stride, General Manager of the Commercial Bank of Australia, Sir Ian McLenan, Chairman of BHP Ltd, Mr Walter Heine, Chairman of Heine Bros and Senator K.R. Wreidt, Minister for Agriculture. The Ad-hoc Working Group continued in the following years to be just as busy, with meetings with Japanese Government officials, Government trade missions and other official Australian organisations. The Ad-hoc Committee did not confine its meetings to only visitors from Australia. In order to better comprehend the rules and regulations applying to entry into Japan of Australian businessmen, the Committee met with the Japanese Immigration authorities from the Ministry of Justice and representatives from the Ministry of Foreign Affairs. In addition it met with the Australian Ambassador on a regular monthly basis. In effect the Chamber’s interests and involvement began to expand significantly from 1974. It was first approached by the person in charge of the Exchange of Personnel Committee of the AJBCC, about the possibility of employment being obtained with Australian companies in Japan for graduate students with Japanese language ability. As the Chamber became more widely known it was approached by a number of organisations for assistance and advice in matters relating to Australia and Japan. Included amongst these were the Continuing Education Programme of Sophia University. This programme was very similar to what we know as the Adult Education Programme in Australia. The organisers of the Japanese Programme sought and were given assistance in obtaining speakers on subjects dealing with Australia; Australian students in Japan, mainly associated with the Japan – Australia Cultural Exchange Centre, to whom a donation of Y50,000 was given to be used in organising a seminar on Australia – Japan Relations; the AJBCC seeking the Chamber’s cooperation in formulating a plan for the establishment of some form of Centre in Japan for Australian students. The Chamber appointed a representative to the latter Committee which comprised representatives from the Australian Embassy, the Japanese Chamber of Industry and Commerce and the Myer Foundation and which would consider the needs and requirements of Australian students and scholars in Japan; the 1972 Cost of Living Report was updated in December 1974; a questionnaire to member companies relating to Japanese Customs procedures which were proving very complex and slow. Response to the questionnaire was considered with particular reference to establishing what might be done about the complexities and delays involved; the anomalies apparent in the status granted Australian businessmen entering Japan was considered by the Executive. As a result it was felt that there was sufficient reason to pursue the matters through the Australian Embassy with a view to obtaining at least some clarification of the procedure and the reasons for the varying treatment in respect of the status being granted by Immigration officers in Australia and Japan. Because of the direct interests and involvement of some of the Australian Principals represented in the membership of the Chamber, the Executive appointed a Committee (Messrs Reg Nicholson (ANZ), Fergus Horsefield (Gollin), and Bill Hal (ASI Market Research) to consider what attitude and suggestions if any the Chamber should adopt towards the proposed re-negotiation of the Japan – Australia Commercial Treaty. Briefly the Committee suggested that because of the basic influence of some provisions of the proposed NARA Agreement, considerations of this matter should be left until after the NARA Agreement was finalised. The Chairman was invited to meet representatives of the Australian business community in Hong Kong in February 1977 to discuss the workings of the Chamber in Japan. While in Hong Kong the Chairman held discussions with the Kangaroo Club in Manila. This club was organised by the Australian Trade Commission Office in Manila as a means by which Australian businessmen located in the Philippines could meet informally. It was not a Chamber but more a committee such as was formed in Tokyo before there were sufficient numbers to form a chamber. In 1977 the Chamber was also approached for advice and guidance on the formation of a Chamber in Bangkok. In other developments the American and British Chambers in Japan advised that members of the Australian Chamber would be welcome at certain of their meetings. In addition the American Chamber asked for the Australian Chamber’s views on its suggestion that the Foreign Chambers in Japan form a “Task Force” to study and act on problems of common interest to all. The Executive agreed and the Chairman attended the first meeting of the “Task Force” without commitment. Members of the Task Force at the time were representatives of the American, British and German Chambers in Japan. As a result of these interests it was decided then to have a member of the Chamber appointed to maintain contact with other Foreign Chambers in Japan and liaise with them as required. The first member to be appointed was Bill Hall currently Chairman of this Chamber. There followed contact by a number of organisations overseas seeking advice and guidance on establishing business groups. Letters were received from Australians in England, the E.E.C. and Thailand expressing interest in establishing chambers and seeking advice and suggestions as to how to go about it. The Norwegian Embassy and the Canadian Business Group also expressed interest in how the chamber was organised and what sort of activities it undertook. The Executive responded to all of these enquiries giving its experience and offering the advice and guidance requested. The Chamber continued to press for progress and improvement of the Entry and Stay provisions of Japanese Immigration requirements for businessmen, a matter first taken up some three or four years before. Matters developed to the point that the Chamber was asked to provide information to the Australian Department of Immigration and Ethnic Affairs in Canberra for use by its representatives at a proposed meeting with the Department of Foreign Affairs in Canberra to compare treatment of the Australians in Japan and the Japanese in Australia. The Chairman was informed during discussions in Canberra that the concept of separate bilateral agreements on, amongst other things, immigration matters, under the umbrella of the Basic Treaty of Friendship and Co-operation negotiations on which had not then commenced, might be the way to bring about changes. In addition the Australian Chamber in Canberra suggested the Tokyo Chamber consider working together with the Australian Chamber by contributing to the latter’s submission to the Prime Minister's Ad Hoc Committee on Australia-Japan Relations. By 1980 as a result of the Chamber's activities the problems of immigration entry status and related procedures for Australians were relaxed by the Japanese Government but only to the extent that Australian businessmen had no longer any need to hand in their Alien Registration Cards on temporary departure from Japan. This relaxation in no way satisfied the Chamber's concern over the main matters of entry and status and the Chamber continued to provide information on Immigration matters to the Department of Immigration and Ethnic Affairs in Canberra and to the AJBCC and JABCC joint meetings in Sydney in October 1981. On 13 March 1985 as Chairman of the Chamber I appeared before the Consultative Committee on Overseas Trade Problems. This Committee was established by the Japanese Prime Minister Mr Nakasone, to receive submissions by way of hearings before it on problems involved in trading with Japan. The Committee members included the heads of a number of top Japanese companies and officials and reported directly to the Prime Minister. The decision involving the appearance of an Australian business representative was taken while I was on leave in Australia and directly as a result of discussions between Prime Ministers HAWKE and NAKASONE. The nomination of the Chairman of the Chamber to carry out this role originated in Tokyo and that he should represent Oceania originated in Canberra. The Department of Trade provided a great deal of assistance by coordinating the input required by other Oceania countries and providing a detailed and comprehensive briefing on Australia’s situation. The Australian Embassy, in addition to giving tremendous assistance in preparing the representation arranged meetings with representatives of Oceania Embassy Officials in Japan just prior to the Consultative Committee Meeting. The representation of other countries including Korea and America, tended to adopt a fairly strong line against continued barriers to trade. The Chamber, while stressing its continued interest in liberalisation of trade in agricultural products adopted a softer approach based on equality of import approvals for those commodities, particularly agricultural products for which America had negotiated bilateral arrangements for their import. During the first 12 years of existence, the Chamber, either at General meeting or meetings only with the Ad Hoc Working Group met over 1000 visiting Australian Government leaders and officials as well as leaders of Australian Industry and Trade delegations. For example those with whom meetings were arranged apart from Sir John McEwen, included:
The visitors stated that in the long run Japan will be forced to put its eggs in fewer baskets thus achieving economies of scale in order that its manufactured products remain competitive on world markets. They said it follows that the trend towards greater dependence on Australia will be slow but inevitable. In response members of the Chamber obviously felt this attitude underestimated and misunderstood the Japanese. In particular, they felt it was dangerous to assume that Japan would not be able to find reliable alternatives albeit at enormous cost if it found its traditional suppliers were unreliable and / or unfriendly. Research and development aimed at finding better ways are basic to Japanese industrial life and it was considered foolhardy to assume that ultimately they will be forced to buy from Australia on our terms.
During the 1980's the Chamber continued to meet with high level visitors including Cabinet Ministers, Trade Union leaders and Premiers of a number of States. It also arranged informal meetings with Mr Okawara, then Japanese Ambassador in Canberra and Mr B. Yoshino, Former Ambassador to Germany and now Director General of TOYOTA Institute of Economics. From these remarks today you will see that the Chamber developed through the interests and energy of its members, into an important contact for visitors from Australia, particularly those involved in a practical sense with relations with Japan. As for the future of the Chamber, I am reminded of Sir Winston Churchill’s comments that it is very difficult to look further than you can see. We are inevitably influenced by the past and present and judging from the past activities of the Chamber and the young and energetic interests of its present membership, the future looks to be well set on the right course. Ted Weatherstone Former Chairman |
