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Poor in natural resources, Japan has long been dependent on overseas supply for most of her raw material and fuel requirements. While imports of raw materials and fuel by the United States and West Germany in I970 accounted respectively for I4 per cent and 22 per cent of their total imports, Japan's imports of raw materials and fuel in the same year amounted to about 59 per cent of her total imports. In addition, Japan depends on imports from foreign countries for Ioo per cent of her wool, raw cotton, and nickel; 98 per cent of her petroleum; 95 per cent of her iron ores; and 55 per cent of her industrial coal. Such being the case, one of the guiding principles in Japan's foreign trade policy has been to expand trade with any country, regardless of its political system. Japan was plagued by a gap between her economic growth and her international balance of payments until the mid-Ig60's and, in order to improve this situation, promotion of exports was given highest priority. Thus, efforts have been made to expand trade with the Soviet Union and East European countries on a commercial basis. After the resumption of private foreign trade in 1949, trade between Japan and the Soviet Union and East European countries was conducted at a low level for some time. However, since the conclusion of a treaty of commerce and an agreement on trade and payment with the Soviet Union in 1957, and the conclusion of treaties of commerce with Poland and Czechoslovakia in 1958 and I959, Japan's trade with Eastern Europe has increased yearly. In I970, the total of Japanese trade with this area broke the $i billion mark ($822 million in trade with the Soviet Union, and $218 million in trade with East European countries). However, these figures account for only 2.2 per cent and 0.6 per cent respectively of Japan's total world trade in 1970. Compared to the figures for Japanese trade with the United Kingdom and West Germany-$I.5 billion and $3.6 billion respectively-they are still at a relatively low level.

The System of Trade between Japan and the East European Countries, including the Soviet Union