NO TREATY

New Zealand Herald, Volume LXXV, Issue 23228, 23 December 1938, Page 12

NO TREATY

AUSTRALIAN TRADE MR. BRUCE'S TALKS TIME NOT OPPORTUNE FUTURE POSSIBILITIES By Telegraph—Press Association—Copyright (Received December 02. 5.K p.m.) WASHINGTON. Dec. 21 With most of his important appointments concluded, the Australian Minister to London, Mr. S M, Bruce, plans to spend the next two days meeting old friends or further carrying on the conversations he had previously begun. The impression prevails that Mr. Bruce's visit here was what the French would-call a "succes d'estime," and this term is used in a highly complimentary sense, for it is widely admitted that he effectively impressed all those with whom he conversed about trade. Mr. Bruce said in an interview that Le had found almost universal willingness and desire to conclude some arrangement with Australia, but he had been, compelled to recognise that the present moment was not propitious. The basic difficulty remained the fact that both countries produced similar products. Clearing the Ground It appears that Mr. Bruce feels that something concise is not outside the realm of practical possibility, and he feels that too long a time should not be allowed to elapse before the writing of some sort of instrument. He expressed satisfaction that he is now completely familiar with the background here, due to the extensive talks he has had, and therefore he will be able to inform his Government with a great degree of accuracy about the actual situation. Thus, by the dispelling of false hopes and perhaps even the dispelling of unnecessary pessimism, the ground will be cleared for a useful instrument if & future occasion makes it possible. While American officials recognise that there will be deep disappointment in Australia concerning tho present unreadiness of the United States to undertake trade treaty negotiations, there is an earnest desire that the Australian people should genuinely understand the situation. ■■r:.h Ultimate Necessity American sources stressed that it would be mischievous to intimate that the United States had "let Australia down"; that Mr. Bruce's visit had been abortive.

-Political considerations, the similarity of products and a host of technical difficulties in negotiations make an agreement impractical now. The situation may change before the end of 1939 or an outstanding'•Democratic victory in the 1940 Presidential election may make a treaty a comparatively simple matter.

It is recognised that the United States ultimately must make concessions to Australia in order to retain the profitable Australian market for her: manufactured goods. Eighteen months henca such concessions may bo easy, whereas .to-day they might mean political suicide.