Mr. C. Asano, the representative of a large Japanese house, the Mitsui Bussan Kaisha, arrived in Sydney by the Yawatu Maru on the 14th instant with a view of ascertaining for his firm the possibilities of ex-tending trade between Japan and Australia. He is staying at the Hotel Metropole, and yesterday in the course of an interesting chat with a Herald reporter gave some particulars regarding the trade which at present exists with Australia, and how it may be extended. It may be mentioned that the words Mitsui Bussan Kaisha can be translated Mitsui and Company, and that it is a firm which conducts a large banking business as well as being largely interested in merchandise.

"The Japanese trade with Australia" said Mr.Asano, "is increasing steadily and does not fluctuate to any great extent. The increase averages from 5 to 10 per cent. each year, and we can take more of your products than we do. In wool, for instance, our imports are worth about £100,000 annually. The conditions of our trade, however, are such that we want fine combing wools, because that in the most suitable for Japanese dress as it exists. There are probabilities that two or three combing factories will be established, and then our imports will be at least double what they now are. One thing however that militates against the wool import is that the Japanese do not wear hats, and the noils—the short waste portions of the wool from the combing mills—are at present useless. These could no doubt be re-exported to Europe. The condition of the money market in Japan has, however, operated against the establishment of new mills.

"As regards wheat, the proportion of the bread-consuming population in Japan is increasing day by day, so that there is likely to be an increased demand for wheat. At present we import flour largely from America, but there are three or four flour mills now established in Japan, and they could use up to 10,000 tons of grain each year. The Australian harvest is from December to March, the Japanese crop is reaped in June and July, and the American in August and September, so that the Australian wheat will come forward when our stocks are becoming low.

"Lead is already an important article of trade with Australia. My own firm has special contracts with the Broken Hill companies, and it imports all the lead which is sent from here. The value of that trade to Australia is about £73,000, and the lead is used in such manufactures as lead-piping and so on.

"One thing which strikes me as likely to become an important article of commerce is frozen meat. The Japanese are becoming a meat-eating people, but the supply is deficient, and we now import from Corea (sic). The day will no doubt come when we can advantageously import frozen meat, but I am informed that the supply in Australia just now is rather short; moreover, we shall have to establish depots for its reception.

" Now, as to what you can take from us in return. We can sell you rice up to a value of £75,000 a year, but of course the Chinese trade is that on which we depend a good deal. Then we can supply sulphur in large quantities, and I understand that the demand for it is increasing. Silk is one of the commodities that we produce in large quantities, and we can send away £50,000 worth each year.

" My firm," Mr. Asano continued," is interested in many departments of commerce. It has a large banking business; it is interested in mining, cotton, wool ; in fact, almost everything. We have agencies in America and Europe, but none as yet in Australia, and I am now here making inquiries as to the likelihood of extending trade. I shall go on to Melbourne by the next Japanese steamer, then return to Sydney by train, and probably remain here some time."

First published in The Sydney Morning Herald on 20 August 1901