LEAD, ZINC IMPORTS

Press, Volume XCVII, Issue 28699, 24 September 1958, Page 13

LEAD, ZINC IMPORTS

“Savage” U.S. Quotas (N2 Press Association—Copyright) MONTREAL, Sept 23. The Deputy Prime Minister of Australia (Mr John McEwen) last night described the action of the United States In placing lead and sine imports on a quota system as “ruthless” and “savage.” He said that it would mean a reduction in dollar income for Australia of 18,000,000 dollars on the basis of 1057 prices. The American action, announced by President Eisenhower at Newport, imposes a cut of 20 per cent, on the basis of exports in the years 1953-57. Last year Australia exported to the United States 133,000 tons of lead. Mr McEwen said this would be cut by 49 per cent, to about 68,000 tons, under the new quotas.

In announcing his decision to impose the quotas, Mr Eisenhower said he realised it was an unusual step. “But it is better suited than a tariff increase to th§ unique circumstances of the case and more likely to lead to enduring solutions beneficial to the entire lead and zinc industry,” he said.

Mr Eisenhower imposed the quota to protect “distressed” United States producers of metals from foreign competition. He thus approved a Tariff Commission recommendation that the domestic lead and zinc industry be given some relief under the escape clause in reciprocal trade agreements with other countries The President’s action was immediately applauded by Senators in lead and zinc-producing states Senator Mike Mansfield (Democrat, Montana), said he was happy that the President had at last taken action, but said he now urged that Mr Eisenhower follow up the quotas with at least “a temporary hike” in tariffs on lead and zinc. Mr McEwen, in a statement issued at Montreal where he is attending the Commonwealth

trade and economic , conference, said Australia “will feel really angry at the ruthless character of the restriction. . . .”

He said it was as important to Australia’s friends as it was to herself that she should grow both fast and strong. Australia’s objections to the imposition of such a quota system “seem to have been brushed aside in a most savage decision.” he said.

He said Australia would press the United States Administration to review the quotas as they affected various countries “with the object of securing at least equitable adjustments for Australia, and we will certainly press for the earliest possible action to meet the world lead problems by multilateral arrangements between the principal exporting and consuming countries.” The Canadian Minister of Finance (Mr Donald Fleming) described the United States action as “deplorable” and “disappointing.” He said it would hit Australia very hard. Britain supported the Australian view. • Sir David Ecctes. President of the Board of Trade, said in a statement that the United States’ action was a

“melancholy retreat” from its moves towards freer trade.

‘‘The United Kingdom, though not directly involved, is greatly disturbed by the United States action, not only because it will affect the earning power in North America of other Commonwealth countries—particularly Australia—but because it represents a melancholy retreat from the policy of opening the markets of the free world of which the United States has been so strenuous a champion,” he said. The Canadian Prime Minister (Mr Diefenbaker) said there would be discussions at the administrative level between the Canadian and United States Governments in the next few days to .work out the best possible prices for lead and zinc.