GIVE WAY.

Auckland Star, Volume LXIX, Issue 125, 30 May 1938, Page 9

GIVE WAY.

EMBARGO LIFTED.

BY THE WATERSIDERS.

Mfi. LYONS' DECISION.

IKON EXPORTS BANNED.

(From Onr Own Correspondent.)

SYDNEY, May 27.

During the past week two startling developments have occurred in connection with our metal export trade. In the first place the struggle between the Federal authorities and the waterside ■workers who had refused to load tin dippings and scrap iron intended for Japan, came to an abrupt conclusion on Wednesday. It will be remembered that Mr. Lyons hful threatened to enforce the licensing clause of the Transport Workers' Act in Sydney if the men refused to follow his recommendation and agree to ship the banned cargoes; and he had given them till May 25 to make up their minds. On Wednesday, therefore, a mass meeting of the watersidera employed at this port was held at the Town Hall and was attended by about 3000 of the men, while another 1000 struggled outside to gain admittance. It was known beforehand that the extremists who wished to maintain the embargo would be defeated, but after three hours' discussion the majority which carried the resolution to lift the embargo was far larger than had been anticipated. Unasked Advice. Before the vote Avas taken a telephone message was received from Melbourne—where the embargo applied by the watersiders has received very strong support—suggesting that the Sydney watersiders should postpone their decision till a joint deputation had waited on Mr. Lyons, but the Sydney meeting —possibly resenting the intrusion of unasked advice from Melbourne—declined to accept this suggestion and followed the lead given by the local officials. The great majority of the members of the Waterside Workers' Federation had by this time reached the conclusion that they could not face the introduction of licenses on the wharves here, for it would, as the resolution worded it, "emash the Sydney branch of the Federation," by introducing "free" labour and giving it unrestricted right of com petition. The meeting reeolved to prevent this, disaster by accepting the recommendation of the Federal Government, "under durees," end lifting the embargo. But both the W.W.F. and the "Labour Daily," commenting upon the resolutions, expressed the strong conviction that it is the immediate duty of organised labour throughout Australia to bend all ite energies jto the task of abolishing the licensing system "by getting the relevant clauses of the Transport. ..Workers' Act repealed. Trade Relations. Naturally Mr. Lyons and hie colleagues were gratified at this solution of their difficulties, and Mr. Lyons publicly expressed his approval of the action of the watereidere, but at this juncture the Prime Minister decided to take the etep «f imposing another embargo of an entirely different kind, which wae calculated to effact even more seriously our export trade and our relations with Japan. Ever since the scarcity of Iron and steel began to embarrass the British Gov ernment in the work of rearmament, the mineral resources of the Empire have become matters of grave importance to its rulers. Acting no doubt on a suggestion received from London, Mr. Lyons authorised a geological expert to make a survey of the iron deposits in Australia. The estimate of iron ore available for us proved to be disappointingly and alarmingly email, end the Federal Government therefore decided to prohibit all iron exports from the Commonwealth, till the position became a little clearer and our prospects of securing adequate supplies for our own needs were well assured.

Needless to say the issue of this embargo on the export of iron and iron ore evoked from the workers loud protests at the alleged inconsistency and insincerity of the Prime Minister. For the Labour leaders who had supported the men's embargo on tin clippings and scrap iron pointed out that Mr. Lyons was prepared to penalise them and was now prepared to impose an even more drastic embargo on metal exports, against the expense of Japan. The reply to this criticism is obvious enough. The chief reason that Mr. Lyons objected to the embargo imposed by the watersiders was that it was an unjustifiable interference with the public policy of the Federal Government, which could not be expected to allow a single section of the workers to dictate economic or political measures to it, without or againet the opposition of Parliament. Groundless Criticism. Rightly or wrongly, Mr. Lyons has taken a step which is at least subject to Parliamentary sanction, and whatever be the consequences, this particular criticism of the Prime Minister on the score of inconsistency is groundless and pointless. A great many other considerations now enter into the problem. Naturally, the Government of West Australia is incensed at the action of the Federal authorities in thus interfering with its rights over its own mineral resources, which are to be subject to State control. But the most vehement opposition to the proposed embargo comes from the Japanese, who, as I have already explained, have undertaken to exploit the enormous iron ore deposits at Yampi Sound, the lease of which is held by an English company. So strongly does Japan feel the intervention of the Federal Government in this matter that it first authorised its Consul-General to protest against the embargo and hae now submitted a formal protest to Canberra, urging the Prime Minister and hie colleagues to reconsider their decision. It may be pointed out that the Japanese Government is quite mistaken in assuming that thie embargo is directed specifically again-st Japan. The reference to the first embargo as a proof of Australia's illwill toward Japan is quite illogical, for the Lyons' Government has compelled the men to withdraw it. In any case, it is absurd to suggest that the Government of a free country has no right to limit the export of natural resources which it regards as indispensable to its own safety, or that its decision to do so necessarily implies direct hostility to any country adversely affected toy thie change-Jα the-direction •f ite=«spetl-ir*4B»'*,. .*«!-■•**■<«£

While Japan is obviously mistaken in J eome of the inferences it has drawn I from the embargo on our own exports, and some exception may be taken to the rather aggressive and dictatorial manner of its protest, the fact remains that the Japanese have a case against the Commonwealth Government and the State Government for breach of contract, disturbance of investment and loss of trade. Right to Compensation. It is true, as the Japanese protest mts it, that the agreement arranged by Brasserts with the Japanese banks to finance the working of the Yampi deposits was arranged with the full cognisance and consent of the Federal Government, and that though the existence of the Yampi deposits had been known for many years no attempt had been made by Australian capitalists or investors to work these mines before the Japanese decided to take this great project in hand. The Japanese have clearly a right to compensation, and so probably has the West Australian Government, but these are matters that are capable of adjustment subsequently, and they should not be permitted to cloud the present issue. Granting that the Lyons Government ha« a perfect constitutional right to direct and control our export trade as it pleases, the fact remains that it has taken this step in an injudiciously' abrupt and misleading way. As the "Sydney Morning Herald" puts the case: "So outside nation can offer any reasonable objection to a decision to reserve most of our natural resources for our own use, but the necessity should be clearly and unequivocally established before there ie a resort to such drastic action as a complete embargo on exports; otherwise the Government lays itself open to international misunderstandings."