FOREIGN CUSTOMERS

New Zealand Herald, Volume LXXII, Issue 22198, 27 August 1935, Page 14

FOREIGN CUSTOMERS

AUSTRALIA'S PROBLEM J PURCHASES AND SALES r ;* QUESTION OF EQUIVALENTS !■ [from oun OWN correspondent] SYDNEY. Ausr. 15 Australia is becoming; increasingly the target of thoso countries with which she has a favourable trade balance. Her pre-eminence as a producer of Merino wool, which is in demand from all textilo manufacturing countries, makes it extremely difficult for her to buy as much from certain countries as she sells them. Canada and the United States arc almost the only countries with favourable balances in their trade with Australia. Obviously this country cannot rpend all tho return from her exports on imports. Thero is a little matter of about £.'30,000,000 a year in interest and other Governmental commitments to be met overseas every year. Foreign countries with which Ausi tralia trades are tiring of paying moro to Australia than they receive from her. Tho German and Italian restrictions on wool buying last year wero undoubtedly directed mainly against Australia. Japan for years has been striving by intensive propaganda to induco Australia to buy moro from her. Belgium, with a threat to stop imports of Australian meat and barley, persuaded the Commonwealth to admit moro Belgian sheet glass. Poland and France The President of Poland recently told tho Consul-General in Australia during the latter's visit to Warsaw that Poland wanted a greater share of tho Australian market. And now France, for long a disgruntled customer of Australia's, has come out into tho open. Her Trade Commissioner in Australia, Mr. George Under, has stated that unless Australia increases her purchases from Franco that country may follow Italy's example and impose a quota on Australian wool. "French exporters who have lost oversea markets are examining the lists of countries which show adverse trade balances with France, and Australia is tho most outstanding," said Mr. Bader. "We would regrot discriminations, but we are .compelled to admit that* from a national point of view, it is quite rational. It is certain that France', which buys wool from South Africa and South America, finds in those countries an outlet, for her goods, which she does not find in Australia, most Australian purchases being made in Great Britain, the United States and Japan. Since 1919 Franco has sold to Australia £44,300,000 worth of goods, and has bought directly from Australia £163,500,000 worth, a balance of moro than £119,000,000, not counting many Australian articles bought by Franco in England." Germany and Batter System Germany fias mado it clear that unless arrangements are made for. establishing credits in Australia by tho admission of her goods Germany cannot continue as a customer of tho Commonwealth. This means that tho present German trade policy is based virtually on a barter system. During the last few months important representatives of German firms have como to Sydney to negotiate business on a barter system. They have announced that they are willing to buy Australian wool, hides and other primary products, in exchange for an equivalent amount of German goods. It is stated that a considerable amount of business with Australian firms has resulted. The registration of a £500,000 company in Sydney a few weeks ago, with the object of buying 17 Junker .aeroplanes from Germany for an Austra-lian-wide air service, in exchange for an equivalent amount of Australian wool, is one practical result arising from the private barter negotiations.