U.S. TRADE WITH AUSTRALIA

Press, Volume LXXIV, Issue 22592, 23 December 1938, Page 9

U.S. TRADE WITH AUSTRALIA

MR BRUCE’S VISIT TO WASHINGTON

IMPORTANCE OF TREATY EMPHASISED

DIFFICULTY OF IMMEDIATE AGREEMENT (uvitid r»»a» association—coptbiobt.) (Received December 22, 10.30 p.m.) WASHINGTON, December 21.

The impression prevails that the visit of the Australian Minister in London (Mr S. M. Bruce) here was what the French would call “s ucces d’estime,” and this term is used in a highly complimentary sense, for it is widely admitted that he effectively impressed all those with whom he conversed concerning trade matters that a treaty between the United States and Australia transcended in importance the mere commercial items it might contain.

Mr Bruce told the Australian Associated Press that he found an almost universal willingness and desire to conclude some arrangement, but he was compelled to recognise that the present moment was not propitious. The basic difficulty remains that both countries produce similar products. It appears that Mr Bruce feels that something concise is not without the realm of practical possibility, and it seems he feels that too much time should not be allowed to elapse before the writing of some sort of instrument. Now that he is familiar with the situation the ground will be cleared for a useful instrument if some future occasion makes such an advance possible. Political Considerations

While American officials recognise that there will be deep disappointment in Australia concerning the present unreadiness of the United States to undertake trade treaty negotiations, there is an earnest desire that the Australian people should genuinely understand the situation. American sources emphasised to the Australian Associated Press that it would be mischievous to intimate that the United States “let Australia down or that Mr Bruce’s visit was abortive.” Political considerations such as the possibility of an outstanding democratic victory in 1940 at the Presidential election, the similarity of products, and a host of technical difficulties over negotiations, make an agreement impractical now. It is recognised that the United States ultimately , must make concessions to Australia in order to retain her profitable Australian market for manufactured goods. Eighteen months hence such concessions may be easy, whereas today they might mean political suicide. The Australian Associated Press says it is understood that the Australian authorities have made a minute investigation of the American market for wool and meat, and contemplate the study of butter, and possibly fruit and wines. It is understood that on the basis that America’s highest importation of wool from Australia is about 75,000,0001b in one year, Australian sources feel that an assurance of an 8 per cent, reduction in the duty, now that American wool prices are near import parity, even if the United States fixed a 50,000,0001b quota, would give Australia a profitable wool market here.

Concerning meat, it is felt that if Australia were to obtain i per cent, quota of America’s 6,000,000,0001b annual consumption, she could meet price competition successfully here. A preliminary study shows that any appreciable reduction in the butter tariff, say four cents, would give Australia a good advantage during those recurring periods when the American butter prices are high and fruit offers a modest but worthwhile off-season market. American authorities insist that the question is not one of tariffs. If concessions were granted for Australian wines they would still be unable to compete against other wines. The high alcoholic content of Australian wines must put them under a tariff disadvantage which otherwise they would overcome under the most-favoured nation’s provisions.

It is felt that the United States would upset an economic law if it attempted to give Australia concessions in the directions indicated and that they would be merely “paper concessions.”

American sources insist that Australian sales methods are not the best in spite of the existing tariff and that Australian products could have a wider salt in the United States if the producers knew how to go about it.

American authorities ask what has Australia done to make direct American bidding at Australian wool sales attractive or the American consumer merino conscious? Experts here insist that until Australia improves her meat qualities and methods of handling tariff concessions would be valueless.