TRADE PROBLEMS

Evening Post, Volume CXXV, Issue 16, 20 January 1938, Page 12

TRADE PROBLEMS

AUSTRALIA'S OUTLOOK

BRITAIN AND AMERICA

POSSIBLE BENEFIT

(From "Tho Post's" RoprosonTatlvc.) SYDNEY, January 14.

Trade is being kept in the forefront of national politics and discussions by consideration of the Anglo-American ' negotiations for a trade treaty, the effect of such a treaty on the Ottawa Agreement, nnd the consequence to Australian trade with Britain and the United States.

It is known that the Commonwealth Government is extremely gratified at recent developments. The tentative list of suggested trade' concessions which America has submitted to Britain containsfew items which would adversely affect Australia's trade with the United Kingdom. Already it is clear that the Angle-American trade treaty will not involve the wholesale or general scaling down of preferences given Australia in the United Kingdom market. Kealising the important issues at stake, Australia was prepared to make genuine sacrifices to assist in the cause of Anglo-American co-operation. Now the Commonwealth Government learns that the sacrifices required of Australia to further this great objective will not be as severe as they feared. The British High Commissioner in Australia, Sir Geoffrey Whiskard, informed the Prime Minister, Mr. Lyons, this week that the Anglo-American Trade Treaty will not be completed before the Ottawa Pact discussion begins, In the meantime, Australia will be consulted daily if necessary, whenever any matter in which her interests are concerned crop up. A VISIT TO WASHINGTON. The Australian delegation for London, or part of it, will visit Washington on the way back from London. There is every reason to believe that revision of the Ottawa Pact will be succeeded almost immediately by an Australian-American Trade Treaty, which will be of great benefit to Australian wool growers. Mr. Lyons, in his latest statement on the matter, said that Australia's position in the British market was so vital to her that she could not be expected! to acquiesce in any measure of surrender there unless assured of compensation in other directions. The Australian attitude was that the prosperity of Empire countries depended on world prosperity. A healthy growth of international trade, accompanied by an improvement in living standards, | was an essential need throughout the world today. The discussion between Britain and America marked an important step in this i direction, because they affected the provisions of the Ottawa Agreement and involved difficulties to which Australia was much alive. The Government believed that extensive benefits to the Empire and Australia would come from the AngloAmerican discussions. Mr. Lyons made it clear that trade negotiations between Britain and the United States, revision of Ottawa, and negotiations between Australia and the United States for a trade pact were all linked., The serious work of remoulding Australia's trade policy had not yet begun. ' Only exploratory discussions had been held, and a great deal more consideration would be necessary before Australia's case could be compiled. ; THE DEFENCE ASPECT. The Sydney "Sun," in editorial comment on the defence aspect of the Anglo-American negotiations, said: "The test of the value of any such agreement to Australian minds will be the measure of security consequent upon the treaty. Hardly any sacrifice would be too great were security in the Pacific to be guaranteed. On the other hand, the smallest sacrifice would be resented unless as the result of political rapprochements and co-operation following the trade treaties, we could look out upon the: world, with some sense that its peace was assured by the two great nations which signed the trade treat! It may happen that the Anglo-American trade agreement may induce a certain English-speaking solidarity—but, unless some .wisdom and conciliation is used; it may tend to sharpen the present division between the democratic nations within the fold and the authoritarian* States without it If we consider, for' instance, the first reaction of Japan, a great trading nation, to the accomplishment of such an agreement, may.it not be regarded as a threat? This ' agreement, then, should become a stepping-stone to a world agreement which would' give the 'have-not' nations .equality of opportunity to develop economically, and thus ease the tension which makes the world an armed camp today." AUSTRALIA AND NEW ZEALAND. Meanwhile, the Commonwealth Government will try to solve trade difficulties between New Zealand and Australia. Negotiations for a new trade agreement for which the Minister of Customs, Mr. White, has paved the way, wiy probably begin immediately after thj* Cabinet has discussed Mr. White's import this month.' Mr. White submitted a preliminary report to Mr. Lyons, and is preparing a memorandum for submission to each Cabinet Minister. Mr. Lyons said, however, that Mr. White's visit to New Zealand had smoothed out many difficulties, and had given both countries a better understanding of the problem of the The report submitted by Mr. White, it is understood, contains proposals and counter-proposals on which the two Governments will endeavour to reach a settlement. The secondary industries will be chiefly affected. There are certain to be modifications of the concessions which Australia now enjoys On the New Zealand market, but others will be granted in their place. One result of the negotiations may be tne stimulation of industries that have not been fully developed, so that they can obtain a share of the New Zealand market and thus compensate for any losses suffered by industries which are now exporting. ~ . . The agreement will be completed before Australia undertakes cither the negotiations for the revision of the Ottawa Agreement or the discussions for a trade pact with the United States.