ABSTRACT
This chapter discusses difficulties in Japan’s relations with Australia and New Zealand and their implications. Australia and New Zealand are highly vulnerable as two of Japan’s suppliers: Japan’s global policies of resource supply diversification place Australia and New Zealand in a dependent position vis-a-vis Japanese demand, even though Australia is a major supplier of some commodities. Australia’s diverse relationship with Japan was reflected in conscious and rapid broadening of its official dealings with Japan into cultural and political realms. Japanese diplomatic rhetoric remained placid and reassuring, but structural changes away from heavy industry in Japan brought about a noticeable decline in its demand for raw materials and a realignment of bilateral trade. Japan’s active support for discussion of the Pacific Community concept had its origins in the 1950s and 1960s, when many academics and officials in Japan were discussing appropriate directions for Japan’s postwar economic diplomacy.
