NO TRADE WAR

Hokitika Guardian, 11 June 1936, Page 2

NO TRADE WAR

JAPAN AND COMMONWEALTH CANBERRA, June 9. Japanese, trade with Australia is not likely to be seriously affected by the Commonwealth’s new tariff schedule. Fear s that Japan may retaliate by curtailing her purchases of Australian wool are offset by the expectation that Japan will increase her exports in some classes of goods. The licensing system which controls these is chiefly aimed at the United States. Rayon is one instance of how Japan will gain rather than lose. Although the duty on rayon has been increase?!, large Australian purchases will be diverted from America to Japan, with whom Australia has a favourable trade balance which will amount to about £10,000,000 this year. Rayon, it' is known, was placed on the licensed list only for the purpose of shutting out American shipments. Foreign countries will benefit by the diversion of trade. Japan will gain in artificial silk piece goods and celluloid sheets; Germany will gain in cameras, guns, and rifles, France in toilet preparations and perfumes, model dresses, cars, and high-grade footwear, and Belgium in ammunition, guns and rnfles. A feature of the tariff plan is that the United States and Canada will be permitted to send fewer than 50,000 chassis a year to Australia, the United States’ share being about 25,000 and Canada’s 23,000.

This will give Great Britain Uie benefit of practically all expansion *in Australia’s motor car market until, the local manufacturing industry is established. For the year ended December 31 last, chassis imports from U.S.A. totalled 25,611, valued at £2,005,000, and from Canada 23,201, valued at £1,254,000.

Ministers are convneed that higher duties will more than compensate for any possible reduction in revenue under the licensing scheme.