TRADE TALKS.

Auckland Star, Volume LXIX, Issue 134, 9 June 1938, Page 7

TRADE TALKS.

COMPLEX PROBLEMS.

Britain, U.S.A. and Australia

Involved.

INTERLOCKING INTERESTS.

United Press Association.—Copyright. (Received 10.30 a.m.) WASHINGTON". June 8. '"The wool tariff is the biggest imposition on the American poblic," the Australian Associated Press learns is the opinion privately entertained by the State Department. But—and the but is extremely important—"until America obtains compensating concessions for its agricultural producers from some important, industrial country, in this case Britain, with which negotiations for a reciprocal treaty are now considered to be two months behind schedule, the United States will be unable to make concessions to Australia regarding wool." This is possibly the central feature of the possibilities of -a trade treaty between Australia and America from the American point of view. The Australian contention, on the other hand, seems to be that any treaty must stand on its own feet. If the United State* grants concessions to Australian wool, America will receive compensations, not by sacrifices or concessions iu other parts of the British Empire, but such rewards as lie within the wider market for American-manufactured goods in Australia. The State Department thinks that the present negotiations between America and Britain must be satisfactorily completed before the Australian and American talks can be begun. Difficulties Between Britain and ITS A There are several outstanding difficulties in the negotiations between Britain and America at the present time. Ihe Australian Associated Press learns authoritatively that the British feel, in the first place, that the dollar is overvalued. giving American foreign trade 100 great an advantage. This is generally admitted by Amenta which, however, holds that, like debts and maritime matters, currency can have no part in trade treaty negotiations. Britain feels that America should not, at this time, attempt quantitatively to improve its export position, and also she feels that extraordinary outreachings to capture new foreign trade fields by currency or other manipulations seriously upset world stability. The State Department can be said to be in general agreement with this, and wiil probably be content to wait for a general improvement in world conditions to give the United States an improved export position. Both the British and American negotiators arc convinced that even if the negotiations are protracted, a good agreement will be reached, iu short, not just one for face saving purposes but one that will give both parties, if not all they arc seeking, at least a substantial part of it. Interests of Dominions Preference. Britain maintains that s7ie cannot sacrifice the interest of the Dominions in the preferential market for their goods in Britain. The State Department insists that Britain must make greater concessions to the United States, but above all she must modify her concept of "perpetual" concessions to the Dominions, an opportunity for such modification being offered in the proposed revision of the Ottawa agreements. The State Department intimates ita readiness for a British increase of quotas oil certain American goods, but without reducing Empire preferences it is value- ! less, since without such reductions. United States exporters would be unable : to fill the quotas. It can, however, safely be said that the Ottawa agreements no matter how they will be changed, will probably remain the central principle of Empire trade policy within and without the Empire. A treaty between Australia «nJ America is not thought likely in the present summer.