Regional Mineral Industry Review Of The Far East (12ea65f5-2a11-486e-a3fb-cc6e8af425c0)

Expanded war in Viet-Nam overshadowed activities in the Far East in 1965, diverting capital and materials from potential regional development projects. Japan with-stood a period of business recession that was particularly felt by its coal mining and iron and steel industries. Toward yearend signs of improvement began to show. Despite the recession with attendant credit restrictions and forced cutbacks in areas of overproduction, Japan's overall industrial output rose nearly 5 percent during the year. Foreign trade, liberalized in 1964, was a strong point in the Japanese economy and took the place of lagging domestic demand. Japan maintained its third place in world production of iron and steel ahead of West Germany and in 1965 was the world's fore-most exporter of iron and steel in primary and semimanufactured forms. Economic setbacks in mainland China caused by its "Great Leap" failures and subsequent withdrawal of Soviet technical assistance were difficulties relegated to the past. However, a newly formed "Red Guard" political group, part of a so-called cultural revolution, was due to cause new disruptions in 1966. Nevertheless, significant gains were claimed in Chinese industry, and the country approached self-sufficiency in petroleum in 1965 by virtue of its Tach'ing oilfield. Restoration of friendly relations was achieved between South Korea and Japan accompanied by Japanese offers of industrial aid and increased trade. Indonesia's economy was deteriorating; the country withdrew from regional development organizations and continued its stubborn confrontation policy against Malaysia throughout 1965. Late in the year after a Communist uprising had been quelled, there was a period of political retrenchme t and it was hoped that economic improvements would follow. Petroleum remained a strong area in Indonesia's varied resources, and its production was increasing. Tin output declined, however, because of operating difficulties.