END OF DISPUTE.

Auckland Star, Volume LXVI, Issue 307, 28 December 1935, Page 9

END OF DISPUTE.

Canada and Japan to Remove

Surtaxes.

NOTES EXCHANGED

(Received 10 a.m.) OTTAWA, December 27. The trade dispute between Canada and Japan which started in July will end on January 1 as a result of Notes exchanged by the two Governments agreeing to mutually remove the retaliatory surtaxes.

Since his sensational return at the general election in October, the Canadian Prime Minister, Mr. Mackenzie King, has been moving with surprising rapidity to redeem his pre-election pledges to improve Canadian trade relations. Three weeks after the election he concluded a mutually satisfactory treaty with President Roosevelt, and within a month had placed trading with the Soviet Republic on a more friendly basis. Still more recently he removed the much-resented dumping duties imposed on British goods five years ago. He completed a trade agreement with New Zealand in November.

The dispute with Japan took a serious turn in July when the Japanese Government imposed a 50 per cent surtax on certain imports from Canada, including lumber and wheat. The then Prime Minister, Mr. R. B. Bennett, stated that this was a violation of the Anglo-Japanese Treaty of 1911, to which Canada became a signatory in 1913. Canada thereupon placed a 33 1-3 ad valorem surtax on all Japanese goods.