HISTORY OF DISPUTE

Evening Post, Volume CXXII, Issue 154, 28 December 1936, Page 7

HISTORY OF DISPUTE

There have been protracted negotiations in an endeavour to bring about a friendly settlement of the trade dispute between Australia and Japan. The dispute arose out of trade restrictions following on Australia's tariff revision. On behalf of the Commonwealth Government, the Prime Minister (Mr. Lyons) stated that the Government was compelled, by a series of drastic price reductions in certain Japanese textiles imported into the country, to impose an increased duty under the general tariff on certain textiles. In the view of the Government, if this action had not been taken Japan would have practically secured possession of the Australian market in artificial silk and cotton piece-goods, to the exclusion of similar goods from the United Kingdom and all other good-customer foreign countries. The Japanese reponse to the Government's action was, in effect, to bring about a total or .almost total cessation of Australia's 'exports to Japan. It was considered that the Japanese action was completely discriminatory, as the conditions under which it was imposed could apply only to =Australian goods. , ,A Japanese ordinance which was to operate for twelve months provided first for the import of wheat, starch, flour, and wool subject to licence by the Government; and secondly for a 50 per cent, ad valorem surtax to be imposed on meat, butter, condensed milk, leather, animal fat, and. casein. The ordinance ordered wool importers and manufacturers to report all quantities under import or manufacture or in stock while, in applying for licences for import, they were required to submit details of the kind, origin, quantity, time of Arrival, and such other information as was required, the purpose being to give the Government control of the entire industry with flexible adjustment oi, imports, which would be usable as a weapon in any further negotiations with Australia.