OTHER TREATIES

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 13

OTHER TREATIES

EXCHANGE OF GOODS CANADA AND GERMANY . . SOUTH AFRICA'S POSITION REJECTION BY AUSTRALIA As with New Zealand, the trade agreement effected between Canada and Germany in October of last year calls for bilateral exchange of goods in equal amounts, a practice that has formed the basis of Germany's foreign policy. The treaty with Canada runs for a year, but, in the event of its not working out as expected, the country which considers itself at a disadvantage can. failing a satisfactory agreement within four weeks, terminate the agreement on six weeks' notice.

The agreement is based on reciprocal "most favoured nation" treatment in customs matters with the exception that neither party is entitled to share in the privileges which one or other may accord to a third State by virtue j of a customs union. Nor may Germany [ claim any of the privileges accorded now or hereafter by Canada to countries of the British Empire. Bilateral Treaty The payments agreement was based on the principle that Germany should buy as much from Canada as Canada purchased from Germany. This implied that the German Government agreed that the whole of the foreign exchange accruing from German exports to Canada should be made available for the purchase of Canadian goods. The extent to which this provision has applied is indicated by the figures for the Canadian trade with Germany for the first three months of this year, when the agreement has been operating:— Imports Exports to Canada to Germany Dollars Dollars January .. 854,112 853,358 February .. 688,360 1,026,109 March . . 910,476 705,360 South African Legislation In South Africa the Union-German Treaty of 1928 provided that German goods imported into the Union were entitled to the same treatment as goods from any other country excepting those on which preferential duties had already been accorded to parts of the Empire. The treaty, which was for two years, to continue automatically subject to denunciation bv either party, aroused much opposition. The agreement was not submitted to the Senate, which, however, passed on it an adverse resolution. Article 8, which conflicted with the resolutions reached at Ottawa, was amended in 1932 and ratified by both Governments in 1934. At the close of this same year an agreement was entered into by which Germany should take over wool to the value *of £2.400.000 against goods of German manufacture. Early in 19:35 the arrangement was extended to embrace other primary products to an additional total of £460,000. Australia's Opposition In February. 1936, the proposal to make an official arrangement between Australia and Germany was denounced by the Commonwealth Minister in charge of negotiations for trade treaties. Sir Henry Gullett. While barter between private individuals or firms in Australia and Germany might be proceeding on terms mutually satisfactory, the Commonwealth seemed to be determined not to make any official arrangement. Sir Henry said: "In July last 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, were sold to Germany on a pound for pound basis in exchange for German goods, nothing is more certain than that all the other great woolbuying countries would demand similar terms. "If this 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 of its secondary industries."

MR. LYONS INFORMED NOT ABLE TO COMMENT . - a AUSTRALIAN ACTION UNLIKELY (Received October 0, 5.5 p.m.) BRISBANE. Oct. 0 The Prime Minister of Australia, Mr. J. A. Lyons, said lie had been informed of New Zealand's trade pact with Germany, but he was not able to comment on any agreement made between another Dominion and a foreign power. Mr. Lyons assured the press that the agreement would not greatly affect Australian industries. He said it was not likely that Australia would negotiate a similar agreement. TRADE WITH BRITAIN LITTLE EFFECT EXPECTED HARDWARE AND WALLPAPERS Little effect on New Zealand's trade with Britain and other Empire countries is anticipated by Auckland importers of hardware, paperhangings and lenses of all kinds as a result of the trade agreement with Germany.* Importers of cameras, however, consider that the arrangement may be of considerable benefit to Germany, to the disadvantage of England and th« United States. The fact that the surtax on artificers' tools has been abolished, while the duty remains the same, will mean only a slight change in the price of such goods as drills. In spite of a considerable reduction in the tariff on builders' hardware, it is not considered that trade with Germany will increase to any extent, as Australian and Brftish products are still in a better competitive position. It was stated yesterday, however, that the arrangement provided a satisfactory source of supply for certain materials, including copper pipe and sheet, which Britain could not supply or manufacture owing to the rearmament programme.

New Zealand obtains practically her entire requirements in paperhangings from Britain and Canada, and there is no likelihood of. Germany gaining admittance to thia market. German colours and designs in waljpapers are of such a nature that it is considered that there would bo no demand for them in the Dominion. Practically all the Dominion's photographic goods come from Australia, and it is unlikely that this trade will be diverted to anv extent.

OUTSPOKEN OPPONENT

ATTITUDE TO GERMANY \BY TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Wednesday » "Germany to-day is out to break up democracy," declared ilr. H. S. _S. Kyle (Opposition—Eiccarton) during the second reading debate on the irade Agreement 13ill in the House of Representatives to-day. Mr. Kyle he was opposed to tiie bill and if there was a division he would show where he stood. - I