SEVERE BLOW

New Zealand Herald, Volume LXXVI, Issue 23340, 8 May 1939, Page 12

SEVERE BLOW

IMPORT REDUCTION

AUSTRALIA'S LOSS

'DEEP CONCERN FELT

PEDEEMi; GOVERNMENT

- By^Telegraph—Press Association —Copyright ui ' ; (Received May 7, 6.30 p.m.) announcement by the New Zealand government .of an increased percentage reduction of imports>has proved a severe blow to nfehy' Australian manufacturers. The matter was discussed by the CJiamber of Manufacturers, but the chairman, Mr." Etendry, said it was nf>V intended to make any detailed ccjriuneht as it. yvas recognised that the restrictions were the business of the New Zealand Government. -However, the Chamber was making representations to the proper quarters gfanted. manufacturers stated that ' Australia could, hardly' complain about Nbw Zealand's action, which was similaFto that taken by the Scullin Labour Government some years ago. The Minister of Commerce, Senator MoLeay, said yesterday that Australia's loss of trade because of the New Zealand Government's import restrictions i 'wrjuld be about £1,500,000 a year. The Federal- Government was deeply concerned about the effect of the restrictions, ""especially in view of the money which had'been spent by Australians in owning up new ' business in New Zealand. "■■■'

TRADE TREATY

AUSTRALIA AND AMERICA 5:..- ■ „ EMPHASISED ULTIMATE AGREEMENT ' LIKELY ■ 'Efi --: * ' / " " WASHINGTON, May 5 a American officials to-day expressed confidence; that the new • Australian Cabinet -generally, would not impede tlje of the preliminary conversations-; -regarding •an AustralianAmerican trade treaty, which." are continuing "slowly but satisfactorily." pf : the State Department re* c^ecOlr. S. M. Brace's statement.last that- .-the formulation of a treaty, between countries; producing exjftrfcaMe... surpluses of similaj" products wpPtisef'with 'JgreatQdifficulties, and. - jiis rWQrSs; were equally .thenar. :It: was, howev>6r;o£eqaa"lly' emphasised that - - there was goodwill on both sides'," and it would be only'a' matter of- time, there:'i: ; thar.-dafficulties - could be osfcrMmel-7'ot S J TKe r iiFlState,'- Air. Gordell he',Bad : 'nQl.. heard .aiiy pro-. S; from .Australia orl .other-primary, producing.countries"relative to the con--tempiated r-;?.TJ»ited NSiherlands barter plan for '' cotton, - wheat for a war emerg£gey. Ho stressed that barter should ' nof in' any..way depress world-prices, BHiee every 1 .:, safeguards against this jftSd&feoleVised- • by 1 - the negotiators. Cifv ~ ; -■ • - ■ . Agreement - --- .JLON.DON AND WASHINGTON •: iash- -- - '• -CONCERN -Ilsl CANADA bs\. (Received May 7. '5 5 p m.) "OTTAWA, May 0 sThe barter, agreement betsceen: Britain- .and', the United States is causing the Canadian' Cabinet concern for fear.-the exchange nf . American for British rubbej' may. shut, j-- out •_ of the British wheat market, " where- she hoped to sell 160^000,000- bushels, of the -new crop. Tile' Wall "Street Journal quotes Cabinet - Ministers as stating that the bstrter proposal is a breach of the triparty trade pacts.