BARTER PROPOSALS

New Zealand Herald, Volume LXXIII, Issue 22353, 26 February 1936, Page 16

BARTER PROPOSALS

MOTOR-CARS FOR WOOL' GERMANY AND AUSTRALIA [from our own correspondent] SYDNEY, Feb 17 Barter between private individuals or firms in Australia and Germany may be proceeding on terms mutually satisfactory, but the Commonwealth seems to be determined not to make any official arrangement. This is the effect of a statement made by the Minister in charge of negotiations for trade treaties, Sir Henry Gullett, who, in a long statement, denounced the proposal. His statement was made as a result of news that certain firms were negotiating for the barter of German motor-cars and parts for Australian wool, and desired the Government to assist them. "In July last," said Sir Henry Gullett, "when negotiating with the German Government in Berlin, I made it completely clear that the Commonwealth was not prepared to negotiate toward such an agreement. If Australian wool, with the approval of the Commonwealth Government, was sold to Germany on a pound for pound basis in exchange for German goods, nothing is more certain than that all other 'great wool-buying countries would demand similar terms. If the practice became general, Australia would have the alternatives of having on its hands 60 or 70 per cent of its unsold wool, or the closing or crippling of half its secondary industries. "There are possibly a few people still remaining in Australia who would look without serious concern upon such a blow at our secondary industries. No thoughtful past.oralist, however, can take such a view. One need only mention that, for every five sheep and lambs slaughtered in Australia, four are consumed by Australians, and of every four head of cattle slaughtered, three are locally consumed. Our primary producers generally, including the woolgrowers, are to-day far more dependent than is always recognised upon local markets created very largely by secondary industrial development. _ "Oversea buyers of wool, with the single exception of Germany, freely recognise that their purchases cannot be balanced by sales of manufactured goods to Australia. The trade treaty policy of the Government, while preserving Australian industry and maintaining British preferences, aims at taking all possible steps to promote goodwill with our best customer countries, by giving them access to our markets. More than that we cannot do.