RUSSIAN PETROL

Evening Post, Volume CXII, Issue 116, 12 November 1931, Page 13

RUSSIAN PETROL

FOR AUSTRALIA THREATENED COMPETITIbN (From "The Post's" Representative.) SYDNEY, 22nd October. It appears certain that the Soviet Bepublic is contemplating an invasion of the Australian petrol market, now controlled jointly by American. and British interests. Kecent cable messages have announced that preliminary negotiations have been, carried out with a syndicate of Australian business men who prefer to remain in the background. No contract has yet been signed, but matters are far enough advanced to cause some concern to those interested in the distribution of petrol in Australia. It is recognised that Bussian competition would be a serious matter, for the Soviet had practically no production costs. Labour would cost the Soviet practically nothing, and it was on the margin allowed for production costs that Bussia could undercut the existing companies. Actual dumping is not feared, but it is pointed out that if Bussia sold petrol in Australia at even 2d a gallon below the present ruling price, it would be a serious matter for the companies now doing business.

Confirmation of the report that there would be no dumping was given by Mr. G. K. Radygin, manager in Sydney of the Russo Export Agency. Bussia's policy, ho said, would be to obtain a proportion of the market at the highest competitive prices. It "would not be in Russia's interests, he said, to cap-, ture the whole of the market, and it was the maximum rather than the minimum price that would interest his country. Mr. Radygin, by the way, does not ( speak English. Ho came to Australia from Russia about twelve months ago to take charge of the combined activities of Textile Imports, Ltd., and the Russo Export Agency, now combined under the one name. ~ Mr. Radygin, questioned through an interpreter, displayed much interest in the report that the Commonwealth Government would be able to act in tho event of dumping. Tho attitude of the Federal Government will depend on the circumstances, for there is no defined policy on the question of trade with Russia. The fact that Russia is now one of Australia's best customers must carry some weight with tho authorities. However, if Russian petrol was placed on the market .at rates affording an unfair advantage the Government's course of action would be clear —it could proclaim a clumping duty. Already action along these lines has been taken in regard to tho importation of Russian timber. Mr. Radygin's final comment was interesting. He said: "If Australia is content to go on paying 23 2d a gallon for petrol, it is proof that she is still rich. Australia must decide whether she will continue to send the greater portion of the oil revenue to the United States or divert portion to Russia."