JAPAN’S RETALIATION

Dominion, Volume 29, Issue 226, 20 June 1936, Page 9

JAPAN’S RETALIATION

Notification to Australia

DUTIES AND RESTRICTION (Received June 20. 12.40 a.m.) Canberra, June 19. The Japanese retaliatory plan against the Australian tariff will take the form of an ordinance which will seriously prejudice exports of Australian wool, wheat, flour and tallow. Notice of it to-day reached the Minister in charge of trade treaties, Sir Henry Gullett, by telephone from the Japanese Consul-General, who intimated that it was intended to impose restrictions and appreciably higher duties on Australian commodities.

The ordinance is expected to become operative in a few days, although it may not be applied while negotiations are proceeding for a way out of the impasse. If it is applied Cabinet will probably decide to abandon the conversations and take still further action under the licensing system against the importation of Japanese merchandise. An earlier message stated that, addressing a large gathering of pastoralists at the Sydney stud sheep show, the Prime Minister, Mr. J. A. Lyons, said: “Despite the latest reports from Japan, I have not yet abandoned hope that within a few days we may reach a basis of negotiation toward a friendly settlement of our troubles. “If we are unable to reconcile our differences it will only be because the Commonwealth Government is unaole to accept dictation upon its tariff policy, either upon the .protection of Australian industries or preference within the Empire. Subject to these conditions we shall do everything possible to maintain that valuable trade enjoyed between Japan and Australia.” Mr. Lyons appealed to interested parties meanwhile to “keep out of the ring” so long as there was a reasonable prospect of success attending the Government’s efforts