TRADE TALKS

Nelson Evening Mail, Volume LXXIII, 29 June 1939, Page 3

TRADE TALKS

AUSTRALIA AND THE UNITED . LITTLE CHANCE OF AGREEMENT llJ.PA—Electric Telegraph -Copvt nrlit I WASHINGTON. 27th June. The Australian Associated Press says that great disappointment prevails officially over an apparent impasse 4n the Australian-American trade treaty talks, which, despite the long exploration, afford less hope at present than ever before. Officials realised that the problems arising from the similarity of the products made agreement most difficult, but hope had always flickered until the

last few weeks, when it has sunk to a forlorn state, particularly in view of Australia's defence programme, which encourages exactly those industries in which the United States hoped to supply part of Australia's needs. Officials here approached the question realistically, but they never closed the door to a possibility of concessions in wool, meats, and—remotely—fruits, although butter was regarded as always most difficult. Reports from Canberra that the American wool-growers frustrated an agreement are characterised as inaccurate, since the United States never promised a wool concession, but, on the other hand, never said it was impossible.

TENDENCIES LAMENTED While the officials have still not abandoned hope, it is felt the most severe blow was the announcement of the Prime Minister, Mr Menzies. that Australia would produce automobiles as a defence measure It is felt that the United States would be satisfied with concessions in respect of very few commodities, such as automobiles and timber, and perhaps refrigerators, radios and typewriters, or at least similar types of products.

American leaders lament a tendency of many raw material-producing countries, such as Australia and Latin America, to industrialise mainly for defence purposes, and Similarly indus-

trial nations such as Britain. Italy and Germany to expand their agricultural production. This process is considered utterly uneconomic.

Nevertheless, on account of the friendship with Australia, the officials refrain from expressing doubts, especially because they recognise Australia’s difficult defence position. The State Secretary. Mr Cordell Hull, has struggled for so long to convert the world to a liberalised trade system that he and his type of leaders regret particularly to see a good friend like Australia Swing to another and Contrary programme.