ABSTRACT
The realisation that there are common interests among the Pacific countries which such a grouping might promote, and common dangers which it might help to avoid, gives the proposal its plausibility. The retreat of British power from South-East Asia and the replacement of Britain by the USA as the main protector of Australia's and New Zealand's security are among the most powerful political influences. The appearance of Japan as the largest customer for Australia's exports and of the USA as the largest source of her imports are economic factors which have diverted attention from Europe to the Pacific. Indeed, Australia's export of these products will be geared to Japan's rate of growth. Japan's trade balance with Australia, and to a less extent with New Zealand, is very unfavourable, it has been noted, largely because of the protection given to Australian and New Zealand manufacturing industry.
