PREFERENTIAL TRADE.

New Zealand Herald, Volume XLIII, Issue 13279, 11 September 1906, Page 6

PREFERENTIAL TRADE.

AUSTRALIA'S OFFER TO GREAT

BRITAIN,

GERMANY MAY RETALIATE.

"The danger of pursuing a policy of preferential trade with Great Britain is such that it might lead to reprisals on the part of those foreign countries with which Australia does a big export trade." That, said the Sydney Morning Herald last week, practically summarises the feeling entertained -by exporters of Sydney in regard to the trade reciprocity which the Prime Minister of the Commonwealth is endeavouring to encourage and foster between Australia, and Great Britain, to the prejudice of foreign countries. On inquiry at some of the leading Sydney firms it has been ascertained that cablegrams had been received to the effect that Germany would in all probability adopt a policy of retaliation with respect to' Australian produce sent to that country. My information is," said the "manager of one large exporting firm," that if German importations to Australia are to be subjected to a differential duty of about 10 pen' cent, ad valorem, as against the importations to this country from Great Britain (and a corresponding difference- in regard to fixed duties) there will be reprisals, which will seriously prejudice Australia's trade with the German Empire. I have a cablegram— and I know of other firms having practically the same information says that Australia must expect retaliation. My message adds that the Australian people cannot realise what this policy will mean, and it sugi gests that public attention should be called to what its effect would be."

It is explained- that the export of wool from Australia to Germany last year represented between 300.000 and 3*0,000 bales, valued at about £15 per bale. "The wheat exports were not very high last season, and in flout' the exports were only moderate also, but it is-stated that a big trade in flour is being built up. The trade between Australia and Germany in coeoamtt oil is described to be assuming very large dimensions. A large trade always* has been done in tallow and copper, and it is represented that a great industry is being developed in fruit, oil cake, copra, copper matte,- Broken Hill ores, wolfram, tin ores, and pig lead. ■■' In each of these great exporting industries Australia will, it is predicted, have to fight against a policy of retaliation on the part of Germany. There is a very high tariff in that country, but it is modified in favour of countries making modifications in favour of Germany. Such a reciprocal treaty exists with Croat Britain. Germany, it is said, imports much more from Australia than she sends here, and, therefore. Australia stands to lose much by the adoption of a policy of retaliation 'on the part of Germany. All orders afloat are affected by this preferential trade policy, and exporters are hopeful that the good sense of the Federal Parliament will be such as to build up and not break down what is a great and growing trade with foreign countries.