"Perhaps you'd Buy an umbrella on a fine day," Fuyuki Kitahara, chairman and managing director of Mitsui and Co (Australia) Ltd told Reuters in an interview.

Mitsui is already the largest foreign company in Australia and the nation's second-largest exporter, shipping out A$5.54 billion worth of commodities in 1997.

This put it just after BHP, with total exports of A$5.96billion, and ahead of the Australian Wheat Board, on A$4.25 billion.

"BHP, CSR or Rio Tinto are trying to dispose of non-performing assets. Their criteria for investment is somewhat different from ours," Kitahara said.

"Many projects or mines or assets are on sale and I believe this is the right time to purchase, if we can afford it," he said.

With existing Australian investments of A$850 million, Mitsui already has biginvestments in Australian coal, iron ore, natural gas, forest products, manufacturing and other enterprises.

The group is battling adversity with the Asian economic downturn seen biting especially hard next year but still its new investments in Australia could easily total A$1 billion if all the group's plans come off.

The company already has big expansion plans on its books, through a planned A$6 billion expansion of the Northwest Shelf liquefied natural gas (LNG) venture, in which it jointly has a one-sixth share with Mitsubishi Corp, and a A$1 billion expansion of the West Angelas iron ore mine in Western Australia, in which it has a 35-per cent stake.

With demand for steaming coal seen doubling over the next ten years, and low-priced coal assets up for sale in a depressed industry, Kitahara would like to buy a good steaming coal deposit at the right price.

Problems, of course, abound.

Kitahara describes Japan's present situation as "very serious" -- and Mitsui and Co's head office backing willbe needed for each new investment. Furthermore, the writing of export contracts for a planned doubling of Northwest Shelf LNG production have been delayed by the Asian crisis, while coal producers are facing price cuts of 10 per cent to 20 per cent for next year.

The Asian crisis has so far not greatly affected Mitsui's exports of Australian commodities, 61 per cent of which go to Japan.

But, Kitahara is bracing for full impact next year, particularly with the United States gearing up to contravene its own global free trade politices by instituting anti-dumping measures against Japanese steel exporters.

With Japanese steelmakers, automobile manufacturers andelectrical suppliers all in the firing line, Japan's economic crisis is seen spreading well beyond banking -- even if "money is just oil to get everything smooth," he said.

Mitsui Australia's Australian expansion, which would be undertaken in conjunction with Mitsui and Co, has the Northwest Shelf and West Angelas as its top priority.

Beyondthat, Mitsui is already engaged in a feasibility study with both Toyota Motor Corp and Nippon Paper Industries Co Ltd to expand Mitsui's existing three forest products ventures in Australia through a new venture.

And it sees steady growth in Australia-Japan trade, worth A$25.6 billion in 1996-97, although the composition of commodities traded might change.

The days of fast growth in Australia-Japan trade could not be expected again, Kitahara said. "(But) Australia is a good trading partner. Japan needs the raw materials. Both can be a good trading partner for each other. That situation will never change," Kitahara said.