AUSTRALIAN METALS

Press, Volume XCVII, Issue 28701, 26 September 1958, Page 9

AUSTRALIAN METALS

Markets In Far East Sought (NJS. Press Association—Copyright) SYDNEY, September 25. An Australian trade mission next month will attempt to establish markets in the Far East, including Communist China, to offset the drastic United States cuts in imports of lead and zinc. The mission, led by Mr R. S Colquhoun, who is the Queensland manager of the Broken Hill Company Proprietary, Ltd., Australia’s major metal producer, will leave in October for Shanghai, Hong Kong and Japan. Mr Colquhoun said the American decision had fanned the enthusiasm of the mining section of the mission. In Canberra, opinion is hardening in Government circles that the US. restrictions, estimated to cost Australia about 15 million dollars a year, are the “last straw.”

Already there is some pressure for a graduated scale of import restrictions—about £l5 million every four months—to operate from the licensing year beginning December 1 next. This would have the effect of reducing the existing import ceiling of £BOO million a year to £740 million over a full year. Without any action, the Government is faced with this prospect: Imports costing £BOO million. Exports earning about £750 million. Invisibles (banking, freight and

insurance on imports) costing about £2OO million.

The result is an overall trade deficit of £250 million for 195859 Cabinet discussed the American decision informally again yesterday, but made no decision. But any action is unlikely to lead to a cut in essential purchases, such as capital equipment, from the dollar area.