TRADE FEELERS

Manawatu Standard, Volume LIX, Issue 21, 23 December 1938, Page 7

TRADE FEELERS

MR BRUCE’S SUCCESS. '

MISSION IN AMERICA. * OBSTACLES TO TREATY. (United Press Association—By Electric Telegraph—Copyright.; WASHINGTON, Dec. 22. The impression prevails here that the visit of the Australian High Commissioner in London (Air S. M. Bruce) was what the Trench would call a “success d’estime,’’'and ,this term is used in a highly-complimentary sense, i for it is widely admitted that he effectively impressed all those with whom he conversed concerning trade matters that a treaty between the United States and Australia transcended in importance the mere commercial items it might contain.

Mr Bruce told the Australian Associated Press that he found almost universal willingness and desire to conclude some arrangement, but he was compelled to recognise that the present moment was not propitious. The basic difficulty remained the fact that both countries produced similar products.

It appears that Mr Bruce feels that something concise is not outside the realm of practical possibility, and he feels that too much time should not be allowed to elapse before writing some sort of instrument. Now that lie is familiar with the situation, the ground will be cleared for a useful instrument if some future occasion makes such an advance possible. While’ American officials recognise that there will be deep disappointment in Australia concerning the present unreadiness of the United States to start negotiations, there is an earnest desire that the Australian people should genuinely understand the situation. PACT IMPRACTICABLE NOW. American sources emphasised to the Australian Associated Press to-day that it would be mischievous to intimate that the United States of America “had let Australia down or that Mr Bruce’s visit was abortive.” Political considerations (such as the possibility of an outstanding Democratic victory in the 1940 Presidential election), the similarity of products and a host of technical difficulties over negotiations make an agreement impractical now. It is recognised, however, that the United States ultimately must make concessions to Australia in order to retain the profitable Australian market for manufactured goods. Eighteen months lienee such concessions may be easy, whereas to-day they might mean political suicide. The Australian Associated Press says that it is understood that the Australian authorities have made a minute investigation of the American market for wool and meat, and contemplate a study, of the butter. market and possibly of fruit and wines. It is understood that, on the basis that America’s highest importation of wool from Australia is approximately 75,000,0001 bin one year, Australian sources feel that 'an assurance of an 8 per cent reduction of duty now that American wool prices are near import parity, even if the United States fixed a 50,000,0001 b quota, would give Australia a profitable wool market here. 1 MARKET FOR MEAT. ■ Concerning meat, it is felt that, if Australia could obtain a half per cent quota of America’s approximately 6,000,0001 b annual consumption, she could meet price competition successfully here. A preliminary study shows that any appreciable reduction of the butter tariff, say of four cents, would give Australia a good advantage during those recurring periods .When American butter prices are high. Fruit offers a modest but worth-while off-seasonal market. The American authorities insist that the question is not one of tariffs, but of sanitary quarantines. American interests declare that, even if tariff concessions were granted for Australian wines, they still would be unable to. complete against other wines. The high alcoholic content of Australian wines must .put them under a tariff disadvantage, which otherwise they would overcome under most-fav-©ured-nation provisions. It is felt that the United States would upset the economic law if it attempted to give Australia concessions in the directions indicated above, and that they would merely be “paper concessions.” American sources insist that Australian sales methods are not the best, despite the existing tariff, and that Australian products could have a wider sale in the United States if producers knew how to go about it. American authorities ask what has Australia done to make direct American bidding at the Australian wool sales attractive, or to make the American cohsumer Merino-conscious? Experts here insist that, till Australia improves her meat qualities and her methods of handling, tariff concesaions woull be valueless.