TRADE TREATY

Ashburton Guardian, Volume 58, Issue 35, 20 November 1937, Page 7

TRADE TREATY

THE AMERICAN PROPOSAL. REACTIONS IN THE EMPIRE. EFFECT ON OTTAWA AGREEMENT (United Press Association—Copyright.) NEW YORK, November 18. While information telegraphed by the Australian Associated Press correspondent in Washington indicates that Australia has not had any considerable part in the recent British-American trade treaty explorations here, it is strongly indicated that Australia has been consulted in London, and a variety of steps are assured to protect Australian interests during the impending negotiations. It is felt, moreover, that any Australian-American treaty will wait until after the conclusion of the pact between Great Britain and America. “It is intimated that Australia has been assured by Great Britain that any concessions that the latter, for instance may grant to the United States on wheat could be compensated by enlarging Australia’s share of America’s wool trade, either direct from Australia, or via London, and possibly also with meat.” The Washington correspondent of the New York “Times” says: “It is expected that the agreement will be signed in May or June. Negotiations will probably begin in Washington at the New Year, subject to war debts being excluded from the discussions.” The Ottawa Agreements. The Secretary of State (Mr Cordell Hull), in an interview, emphasised that the United States never questioned the principle of the Ottawa agreements, but desired to establish whether the minimum rates granted to the Dominions under v that agreement were changeable. Negotiations for the last year had hinged on that question. It was announced to-night that the United States and Canada wilt negotiate a new agreement, the most important aspect being an assurance that Canada will not make any undue sacrifices in yielding advantages under the Ottawa agreements. There will eventually be reciprocal discussions with Australia, New Zealand, and South Africa.

A message from Ottawa says that the Prime Minister (Mr W. L. Mackenzie King), in a statement, declared: •‘‘Canada is 'fully alive to the many and varied political and economic implications of the negotiations.” It is not believed that Canada and the United States will negotiate a new separate treaty without taking the British-American pact into consideration. It is suggested that Canada might give the United States a better share of the British market for lumber, meats, and fruit, and the United States might give Canada concessions on cattle and fish. Trade Diversion. The correspondent of the Australian Associated Press, quoting an important American source, says: “The general impression prevails that Australians are dissatisfied with the results of the trade diversion ' programme of May, 1936, which, it is felt, were principally directed against Americans. Figures show that, the United States exports to Australia in the first eight months of 1937 were greater than for the corresponding period last year, indicating. that Australia has issued, special import IF cences to the United ’States when she was unable to obtain comparable pi oducts elsewhere. It is now felt that the Commonwealth is ready to relax the entire system. American observers feel that a programme, ii designed to force the United States to purchase more Australian goods, cannot be considered. “As it is controlled by many subtle factors, international trade cannot be easily influenced by the actions of any one Government.” CANADA EXPRESSES FEARS. EFFECT ON! FRUIT AND LUMBER. VICTORIA (British Columbia), November 18. The Premier announces that he is making representations to Ottawa about the threatened removal of preference through the BritishUnited States trade treaty,, which would be ruinous to the British Columbia fruit and lumber trade. WELCOMED BY NEWSPAPERS. NEW STAGE IN PROGRESS. (Received This Way, 10.15 a.m.) LONDON, November 19. The newspapers generally give editorial Avelcome to the announcement in the House of Commons of the new stage reached in the progress toward an Anglo-American trade agreement. At the same time, details of the American trade agreement procedure are explained to show the necessary delays before the final stage of the negotiations and agreement can be reached. Most writers emphasise the farreaching political, as well as economic, significance of the prospective agreement. MOTOR SHARES FALL SHARPLY. FEAR OF AMERICAN IMPORTS. (Received This Day, 10.55 a.m.) LONDON, November 19. The trade pact negotiations have resulted in a, sharp fall in motor shares

as it is feared the agreement ,-njight result in a considerable increase ih the imports of American cars. *... J , Other markets are weak. Industrials show numerous declines, and th,e shipping, oil, and mining sections are all dull. ' ’ ’