TRADE DISPUTE SETTLED

Press, Volume LXXII, Issue 21976, 28 December 1936, Page 7

TRADE DISPUTE SETTLED

♦ Australia and Japan WOOL EXPORTS TO RESUME COMMONWEALTH DUTIES REDUCED rnr.ss .\ss<.ciATios-<r'-rvFiuFi • (Received December 28, 12.40 a.m.) MELBOURNE, December 27. The settlement of the Japanese trade dispute was announced to-day by Sir Henry Gullett (Minister in charge of Trade Treaties), who said an agreement for 18 months had been reached. Japan had agreed to restrict the export to Australia of cotton piece goods and artificial silk, excluding calico for bagmaking, to 102,500,000 square yards. Japan was issuing a permit for the import of 800.000 bales of Australian wool in the 18 months period beginning on January 1 at the rate of 533,000 bales a year. Both countries will remove the prohibitions now operating. Australia will reduce the duties on cotton piece goods to the 1934 level. COMPLETE ACCORD NORMAL RELATIONS TO UK RESTORED (Received December 28, 12.30 a.m.) TOKYO, December 27. The Dome! News Agency says Mr Arita (Foreign Minister) informed the Cabinet that complete accord with Australia had been reached. Consequently each country was lifting the trade restrictions against the other by the end of the year, and normal relations would be restored again. News of the impending agreement caused a boom on the rayon and cotton yarn markets all over Japan. Prices rose so rapidly at Fukui. a big rayon centre, that the market was suspended. Japanese millers view the resumption of Australian trade relations with mixed feelings, because although they are glad to regain Australian wheat, of which the quality and price are satisfactory, they are alarmed at the prospect of Manchuria again importing Australian flour and wheat, as presumably Manchukuo will also now lift the embargo.