TRADE WITH U.S.A

Evening Post, Volume CXV, Issue 63, 16 March 1933, Page 13

TRADE WITH U.S.A

PROMOTING GOODWILL

UNDERSTANDING NEEDED

"Although America may have set a bad example initially, every nation has now set up high tariff walls and hidden behind them, with the result that no business is being done," stated Mr. J. David Larson, secretary of the Los Angeles Chamber of Commerce, who has been touring Australia in the interest of business between the two countries, and who arrived in Auckland on Tuesday by the Mariposa. Ho intends spending a month in New Zealand with a view to promoting goodwill in trade between the United States arid New Zealand.

"What-is necessary throughout the nations," Mr. Larson said in an interview witli the "Auckland Star," "is a more common-sense adjustment of tariffs'generally. - We cannot upset the economic picture all 'of a sudden, but something concrete is necessary, and it is pleasing to note that a great deal more study is being given to this subject at the present time than ever before." * | Mr. Larson, in discussing' trade reciprocity between the "United States and Australia, said that he had ascertained that .there were a number of commodities which he . considered Australia could supply to America. For instance, it appeared from the low price at which shoes were selling in the Commonwealth, and the high cost of labour, that leather was cheap, and could be exported at reasonable prices. On the other hand, r-itrus fruit and wheat were not wanted. He was interested in the wool position, and could not understand why so much wool produced either in Australia or New Zealand was sold to America through England. In 1931 the United States purchased 60,000,0001b of .wool, of which 40,000,0001b came from England, 75 per cent, of which was produced either in Australia or Now Zealand. The other 20,000,0001b was imported direct from this hemisphere Mr. Larson expressed the view that there was room for inquiry with a view to seeing whether it was not possible for a much larger quantity of wool to bo bought (direct from New Zealand.

In discussing tariff barriers, Mr. Larson quoted figures to show that the United States had not erected the highest walls. Forty basic commodities of the United States, including cotton and coffee, averaged 65.2 tariff charge, while in Australia for the same commodities the tariff charge averaged 132.7. It was questionable whether the Australian people really benefited from the high protective tariff for some industries, owing to the limited population. It might be that the people were paying for the tariff walls. The large populations of the American States made the position totally different, as they had the people to consume what was manufactured.

■ Referring to the exchange rate, which had been detrimental to America's overseas trade, Mr. Larson said the solution was through better mutual understanding between the nations. It was essential that Great Britain and America should work in harmony, for the wholo economic structure of the world depended on the English-speaking nations.