JAPAN TO RETALIATE

Dominion, Volume 29, Issue 225, 19 June 1936, Page 11

JAPAN TO RETALIATE

Higher Australian Tariff

(Received June IS, 8.25 p.m.)

Tokio, June 17.

The Domei Press Agency learns that Australia’s reply, received this afternoon, regarding trade negotiations, is unsatisfactory, aud that at an official conference it was decided to submit invocation of the trade protection law to Cabinet, which is expected to obtain Imperial sanction for enforcement on Friday.

A Foreign Office spokesman, Mr. Amau, doubted whether retaliation against Australia could be enforced as soon as to-morrow, but it undoubtedly would be within a few days. According to a report from the Australian Consul, Mr. Mural, Japau is willing to continue negotiations for a treaty with Australia after the retaliatory measures are effective.

Mr. Amau added that retaliation was supported by ail circles, even manufacturers, who consider it a good opportunity to establish the independence of the clothing industry, including the development of a suitable substitute for wool.

It was recently reported that as an inducement to Japan to reopen trade treaty negotiations, the Commonwealth Government is prepared to transfer Japanese goods from the general tariff division to the intermediate division. This would reduce the duty on Japanese rayon from 9d. to Bd. a yard, and on cotton piece goods by id. all round. Australia is also prepared to undertake to ensure that Japan retains at least half her present textile trade, while facilities will also be afforded for Japan steadily to expand her Australian trade as a “good-cus-tomer” country.