U.S.A. RECIPROCITY

Grey River Argus, 6 March 1937, Page 9

U.S.A. RECIPROCITY

WITH AUSTRALIA , Good Trade Outlook THE SHIPPING RIVALRY. (Aus. & N.Z. Cable Assn.) (Received March 5, 10.35 p.m.) WASHINGTON, March 4. The Associated Press has canvassed thc field of Australian-Anierican relatious among responsible, officials, in an effort to determise the position, as it will bo presented to the new Australian officer when he arrives here. Ihe officer will be cordially welcomed, and an earnest effort will be made to deal with all problems in the spirit of con. cession and with an understanding of Australian needs. Australia’s satisfaction over the redress in thc balance of trade . with U.S.A is heartily shared. It is appreciated that if wool imports from there can continue, the desired balance would be maintained in 1937, and it is generally agreed that a reduction of the U.S.A, tariff on wool may be ct’sential. While the officials were reluctant to promise such reductions, they intimated that thc wool position affects not only Australia, but Argentina, South Africa and other wool exporting countries:, and- -t'Jaiit there was the possibility of general pressure to make a re-examination of America’s high wool duties necessary. Thc State Department sees in every increase in the direct American purchases of Australian goods the best corrective of, the present trade tension.

The correspondent was reliably informed that thc negotiation of an Australian-American reciprocal trade treaty may not be expected until Australia voluntarily cancels what America considers to be her discrimina. torv tariff restrictions.

The official American position concerning thc shipping situation can be said to be as follows: There is surprise that the competition supplied by tho United States lines in the Pacific Ocean is considered to be unfair. The official view holds that British shipping has always been heavily subsidised. It is felt that thc American linos have developed the Australian and New Zea. land passenger traffic enormously, from 150 passengers per month a few years ago to five hundred a month now, of whom 250 arc tourists. There is traffic enough for the British lines also, and these are welcomed is Australia. There is concern over the Tasman Sea. shipping restriction,, but there are hopes that these will not be instrumented, and that it will not bo necessary to deprive the American lines of a share in the Tasman Sea revenue, which annually approximates fifty thousand pounds and particularly now that two British vessels will also be subsidised.

The Associated Press learns, authoritatively, that only after protracted discussioss between 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 clear to the State Depart, most to the effect that a genuine difference exists as betw’een subsidies that are of such a moderate nature that they aid lines which legitimately serve a worthy national purpose, and subsides of such an unrestricted nature, that they become instruments for driv. ing competition from, the seas, or use taxpayers’ money to enable favoured private interests to accumulate large profits. This view point can be said to have made a definite impression on thc American official mind and there is some reason to believe that certain ,influential quarters will view with satisfaction the impending revision of thc American shipping subsidies and allowances, particularly if they are downward'.

Altogether tho canvass leaves tho impresfeion that American receptivity toward tho idea of making a variety of necessary concessions in the interests of mutually satisfactory Austra-lian-American trade relationships are greater than at any time before, and that the belief prevails that thc Australian Government in also ready to .meet tho American Government halfway. Japan and Australia BARTER QUESTION. TOKIO, March 4. M. Hofi.uuchi lias announced that negotiations are shortly being opened for a commercial navigation treaty between Australia and Japan. He added that Japan is making an effort to conclude barter agreements, i'n view of tho prevailing tendency of international trade relations.