AMERICAN WOOL TARIFF

Press, Volume LXXXVIII, Issue 26869, 23 October 1952, Page 8

AMERICAN WOOL TARIFF

Proposed Increase N.Z. AMBASSADOR TO PROTEST (New Zealand Press Association) WELLINGTON, October 22. The New Zealand Ambassador in Washington (Mr L. K, Munro) had been instructed to present a Note to the United States .State Department about the United States Tariff Commission's hearings on wool and the commission’s proposal to impose a higher tariff on these imports, said the Minister of Agriculture (Mr K. J, Holyoake) tonight. Mr Holyoake referred to press reports from Canberra about the Australian Government’s concern at the restrictions on the entry of farm products to the United States market, and said that the New Zealand Government was also making every effort to get more freedom to make valuable sales in the dollar area. The products maifily affected were, meat, wool, and dairy produce, he said. Full information had already been published on the meat situation. Official representations had also recently been made at the highest level about wool and dairy produce. * . , . . The Minister said no decision had yet been made by the United States Government on the matter of increased tariffs, but during the hearings the United States Department of Agriculture had recommended to the commission that a special fee should be imposed on wool in addition to the existing tariff.

Contents of Note “The Ambassador’s Note will refer to the importance of wool to the New Zealand economy and as a dollar earner for the sterling area, and will draw attention to the definite commitments undertaken by the United States under the General Agreement on Tariffs and Trade (G.A.T.T.) to keep its wool tariffs at agreed levels,” said Mr Holyoake. “The Note will recall that the original negotiations at Geneva in 1947 nearly broke down on a proposal to raise United States wool tariffs and will add that New Zealand regards the present situation just as seriously, especially coming on top of difficulties about dairy produce.” The Ambassador had also recently been instructed to make representations about sales of dairy produce, said Mr Holyoake. The United States restrictions on dairy produce were imposed under the authority of Section 104 of the Defence Production Act. and had the effect of banning completely the import of some commodities, such as butter, and of fixing quotas for others, including cheese. This action by the United States had already been recognised by the contracting parties to G.A.T.T. as contravening that agreement, Mr Holyoake said, and the question of further action to be taken was at present being discussed at a meeting of the parties in Geneva. Controls on Milk Powder In the meantime, it had appeared likely that pressure from the farm bloc in the United States might lead to an extension of the controls to cover wholemilk powder and buttermilk powder, said the Minister. New Zealand had developed an important trade in these milk powders with the United States, and the Ambassador had been instructed to protest strongly against the suggested extension.

The protest had been made, and the milk powders in question now remained free from control for a fur- : ther period, Mr Holyoake said. It had also been announced in the United States that a 15 per cent, increase in cheese quotas was being made effective forthwith.

Mr Holyoake said that representations of this kind had been received most sympathetically by the United States Administration. The Administration was fully aware of New Zealand’s interest and of the need on more general grounds for a liberal policy of allowing goods into the United States.

The Administration could, however, work only within the limits imposed by the United States Congress regarding tariffs and other restrictions, he said. The New Zealand Government would continue to do everything in its power to secure the removal of those restrictions and to obtain better opportunities for New Zealand’s exports.

OTHER NATIONS PROTEST (N.Z. Press Association—Copyright) (Rec. 12.10 a.m.) NEW YORK, Oct. 22. The New York “Journal -of Commerce’’ today prominently displayed on its front page news of the formal Australian and New Zealand protests against the proposed increased American tariff on wool imports. The journal's Washington correspondent said that at least seven other major wool-producing nations had protested formally to Washington against the possibility of a higher import duty on raw wool and tops. The other nations named are the Argentine Uruguay. Britain. France, and Belgium The journal said that the Tariff Commission had given no indication of how soon it would send its recommendation to the White House.