TRADE TREATY

Manawatu Standard, Volume LVIII, Issue 77, 28 February 1938, Page 9

TRADE TREATY

DISCUSSIONS PROBABLE. AMERICA AND AUSTRALIA. PROSPECTS EXAMINED. (United Press Association—By Electric Telegraph.—Copyright.) WASHINGTON, Feb. 25. Since Canberra last year abandoned the licensing system applied against the United States, high officials here have been interested in prospects of a trade treaty with the Commonwealth. There are several reasons why America tends to pause at this time before beginning negotiations with Australia. Firstly, the State Department is hopefully awaiting the reassembly of Parliament at Canberra after Easter, when the Government is expected to announce a tariff policy affecting a dozen remaining items on the disabilities list. Washington cannot object if ordinary protection is given to new industries which have been firmly established on an economic basis as a result of the Gullet policy, but officialdom would be undoubtedly disappointed if an all-round higher tariff was applied, thus negativing in advance the benefits to be gained from items which possibly will comprise an important part of the contemplated treaty negotiations. INTERNAL POSITION.

Another reason for pause is that the internal position will be more clearly defined when the discussions between Britain and the United States are nearer finality. The State Department will be more aware of what concessions are available to Australia, and will be more ready to meet objections from sections of the United States which have asked for sacrifice, and which are equally vocal in the United States as they would be in Australia. *

This mark-time'period will be utilised in a careful survey of ground offering possibilities for treaty negotiations. For instance, one demand which the United States is certain to make is for most-favoured nation treatment, which is characteristic of all her treaties. It is impossible at the present stage to forecast the benefits that can be expected by either party, except to point out that with mutual goodwill present, as .obviously will be the case, surprisingly ingenious solutions can be found by tariff experts for seemingly the most baffling problems. For instance, although the United States produces maize, milk and cream abundantly, milk and cream are imported from Canada and corn from Argentina without serious detriment to home producers by finding special limited markets for them. DANGERS APPARENT.

■ Naturally, all will not be plain sailing. One of the dangers Australia will have to guard against will be to avoid paying for concessions granted by the United States to other Dominions, if not to Britain. It is reliably stated* here that north-west lumbermen in the United States have agreed to concessions being granted to Canada, on the understanding that compensations are received from Australia, in which a market should be assured for north-west softgoods. High State departments deny that such a principle is followed in treatymaking, but the point is not easy to overlook. Neither American nor Australian officials are ready to predict when the discussions can be expected to reach a concrete basis with so many uncertain factors still operating, but a favourable augury is the acknowledged fact that Anglo-American discussions are proceeding in the most satisfactory manner. It is over-early to say yet whether the visit of Sir Earle Page and Mr I. W. White (Minister of Trade and Customs), returning from London, will be well timed from a technical viewpoint, though from a goodwill and publicity angle, an official call from a Commonwealth Minister is always worth while. Mr Cordell Hull (Secretary of State) stated that he had not heard whether Sir Earle Page and Mr White were coming, but Australian sources here point out that their presence in London would enable them to be called to Washington if necessary.