SHIPPING PROBLEM

Evening Post, Volume CXXIII, Issue 55, 6 March 1937, Page 9

SHIPPING PROBLEM

AUSTRALIA AND U.S.A.

FEELING IN AMERICA

CONCESSIONS MAY BE MADE

United Press Association—By Electric Tele-

graph—Copyright.

WASHINGTON, March 4.

American receptivity towards the idea of making a variety of "necessary concessions in the interests of mutually satisfactory relationships between Australia and America is greater than ever before, and the belief prevails that the Australian Government is also ready to meet the American Government half-way.. ,

The Australian Associated Press agency canvassed the field; of Austra-lian-American relations among responsible officials in an effort to determine the position as it will be presented to the Australian officer when,he arrives to have conversations wilh responsible political and commercial leaders in the United States. The officer will-be cordially welcomed, and an. earnest effort will- be made to deal with the problem in a spirit of concession and understanding.

WOOL DUTIES MAY BE LOWERED.

Australian satisfaction over; the redress in the balance of trade is heartily shared. It is appreciated that if wool imports can continue, the desired balance would be maintained in 1937, and it is generally agreed that a reduction in .the tariff on wool may be essential. While officials were reluctant to promise such reductions, they intimated that the wool position affects not only Australia but also Argentina, South Africa, and other wool exporters, and there is a possibility of-gene; ral pressure to.make a re-examination of high wool duties necessary..

The State Department sees every increase in direct American purchases of Australian goods as- the best corrective of the present trade tension. The agency's correspondent - was reliably informed that the negotiation of an Australian-American reciprocal trade treaty may not be expected until Australia voluntarily cancels what America considers discriminatory tariff restrictions. . . •

CONCERN OVER TASMAN LAWS

The official American position concerning the shipping situation can be said to be that it is. surprised-that the competition supplied by United. States lines in the Pacific is considered unfair. It. is argued that British shipping has always been heavily subsidised. It is felt that the American; lines have developed the Australian and New Zealand passenger traffic enormously —from 150 passengers a month a few years ago to 500 now, of whom 250 are tourists. There is traffic enough for British lines also, and' these are welcomed. There is concern over the Tasman laws, but it is hoped that these will not be put into effect and that it will not be necessary to deprive American lines of a share in the Tasman revenue, which annually approximates £50,000, particularly now -that two British vessels will also be subsidised.

APPRECIATION OF BRITISH POSITION.

The : Australian Associated ; Press agency learns authoritatively that only after the protracted discussions be-, tw.een British and American officials has there arisen a real appreciation-of the true merits of the British position concerning Pacific shipping. The British viewpoint has been made dear to the State Department that a genuine difference exists between subsidies of such a moderate-nature that.! they aid lines which legitimately serve a worthy national purpose and subsidies of such an unrestricted nature that, they become instruments for driving competition from the seas or use the taxpayers'.. money to enable favoured private interests to accumulate large profits.. This viewpoint can be said to have made a definite impression on the American official mind, and there is some reason to believe • that certain influential quarters view with satisfaction the impending revision of American subsidies and allowances, particularly if they are downwards.