Negotiations for the conclusion of a trade agreement between Japan and Germany were opened at Berlin in the fall of 1937 between the Japanese Embassy and the German Government authorities. The primary purpose was not merely to strengthen the economic relations between the two countries for cementing further the bond of their anti-Comintern relationship, but also to improve our unfavourable balance of trade with Germany and at the same time to assure the supply of goods which are essential to our country.
Despite the earnest efforts of the representatives of both countries, the
negotiations have unexpectedly taken a long time due to various unforeseen technical difficulties arising from the fact that the trade is of a considerable volume and involves several hundred kinds of articles for both export and import. But agreement of views was finally reached and a draft agreement has just been initialled by Ambassador Oshima and Mr. Wohltat, chief of the German delegation. Now the Japanese and German Governments will each take the necessary internal procedures in accordance with the draft agreement, upon the completion of which the agreement will be formally signed between the representatives of the two countries. As for the exact date of the formal signature, it cannot yet be definitely stated, but our Government intend to complete the necessary preparations as soon as possible.
Although the contents of the agreement cannot be made public pending formal signature, it may be stated that the instrument will effect not only an increase of the volume of Japanese-German trade but also increased economic interdependence between the two countries. On the one hand, Japan will be able to augment the supply from Germany of articles required in times of peace as well as of war, accelerating our production expansion and the growth of our national strength. On the other hand, Japan will be of material help to Germany, which is to be supplied with an abundance of important goods, including marine and agricultural products.
The agreement has important significance in that it brings Japan into a still closer economic relationship with her collaborator against the Comintern. Moreover, it constitutes an innovation in our trade agreements with foreign countries in that it is an agreement after "planned economy," adjusting as it does the complex trade relations between the two countries on a systematic basis.
It is a matter for congratulation that, through agreements such as the Japanese-Manchoukuo-Italian trade agreement and the present Japanese-German agreement, the anti-Comintern axis is being steadily strengthened in the economic sphere as well as in other spheres.