IMPORT QUOTAS

Otago Daily Times, Issue 22259, 11 May 1934, Page 9

IMPORT QUOTAS

THE JAPANESE VIEW SPIRIT OF TREATY VIOLATED (United Press Association.) (By Electric Telegraph—Copyright;) TOKIO, May 9. The Minister of Commerce and Industry (Mr Matsumoto), who; was interviewed, said: "It is a thousand pities that Britain took such action, imposing quotas, which perhaps are necessary from the British viewpoint, but which, I cannot help thinking, violate at least the spirit of the Anglo-Japanese Treaty, because obviously aimed at our goods. I think the British attitude is particularly unfair. I estimate that the affected trade will be reduced about two-thirds in the present channels, which is not a grave, but still an appreciable amount."" l ] A DRASTIC ACTION. ; TOKIO, May 10. -/(Received May 10, at 7 p.m.) The foreign.spokesman described the effect of the announcement of the British restrictions on Japanese trade as; psychological, which, while being received with comparative calm, had shocked the Japanese, people's, long- -standing sentimental regard for Britain. ..'" Before the Japanese Ambassador in London (Mr Matsudaira) could convey our queries and observations regarding Mr Riinciman's Note, Mr Runciman announced quotes with great suddenness. We are inclined to interpret Britain's action as an infringeihent of our rights under the Anglo-Japanese treaty, but we are still studying this aspect in accordance with the spirit and letter of the treaty, and we will do pur utmost to harmonise.and maintain our friendly trade relations, despite the British Government's drastic action. Years ago such action _ would have greatly upset our industrialists, but now they have the confidence to meet the challenge, and, we hope it will' encourage them to further progress." ••;.- BRITATN AND FRANCE.. NEGOTIATIONS" FOR TREATY. (British Official Wlreles».) " ,'" , RUGBY,.May 9. ; -Denunciation of the Anglo-French Conventions of Commerce and of 1826 and 1882, of which the French Government gave notice on February 11, will take effect on May 12. Negotiations for the conclusion of a new treaty have begun. Meantime, as a provisional modus vivendi, pending the conclusion of this treaty; it .has been agreed that the 1882 convention shall be continued in force subject to a fortnight's notice of the denunciation by either side with the exception of. articles relating to navigation, which will'.lapse' on May 12, and on 'the understanding that neither country will invoke the provisions of the! convention* in the matter of quantitative restrictions on the importation of goods from one country into the other. As regards shipping questions, it ie explained that both countries are parties to the Maritime Ports Convention, signed at Geneva 7 in 1923. ' AUSTRALIA'S FEAR. '•',,..'' '..' CANBERRA; May lb. (Received May 10,. at 7 p.m.) Officials consider that one result of the British policy: with regard to \ Japanese exports, will, be to increase the presr sure ; of .Japanese .imports -*on . the Australian market. The balance of Australian-Japanese trade for. many years has. beep in favour of Australia. It -is considered, likely that, the British Government will" formally ask the dominions to impose restrictions , against Japan similar to those proposed in the colonies.; Alternatively, Britain may. sesk concessions"; which could only be given at the. expense of Japan's, trade with Australia. ' ... : > ' AUSTRALIA WAITING .(Feom Oub Own Correspondent.) SYDNEY, May 5; Probably owing, to the pressure that has been brought to bear from all over Australia the position in regard to the possible restriction of exports to\ Great Britain appears to be crystallising, and the anxiety is so pronounced that there will, be a sigh of relief when Britain's requirements are definitely known. Even the Prime-. Minister (Mr J. A. Lyons), in his latest utterance, said he had a feeling that Australia was about to face a crisis. Reading between the lines of his speech it is safe, to say that he expects some demands of a rather drastic character, which will force Australia to reorganise its marketing arrangements in a .manner that will have serious repercussions throughout the Commonwealth. "The Commonwealth Government," said Mr Lyons, "has always been opposed; and is still opposed, to the policy of restriction of production and export, and, .in the interests of Australian primary producer's, the Government will not institute regulation of the export of butter and meat unless, and until, it is absolutely^ I have a feeling that a crisis is ahead of.us. The decision will have to be made by the people of Australia whether they are satisfied With the methods that have been followed. It may be harder to make a decision now that, things are better." This seemed hopeful until MiLyons added that the Government, was preparing for any necessity that might arise. It was considering the. whole aspect of the problem —the best means of organising the primary industries to meet the position, the basis for consultation between, the United . Kingdom and the other dominions, and the possibility of finding other markets, should Britain's policy lead to a restriction of certain exports from Australia. It i s clear now that the Federal Government fears demands from Britain, and'it has in mind the rationalisation of agricultural .marketing, to enable ,the. industries concerned to adopt the sahie attitude towards adverse marketing conditions' as would be displayed/ by well-, organised secondary industries. If,: despite the efforts of the Government, definite limits were imposed on. the sale of Australian products, by the partial closing of what was to-day tlic only, free market, organisation of industry was preferable to chaos, which would be the only alternative. In considering the question of consultation with the United Kingdom, the Commonewalth and State Governments were doing nothing more than- adopting a council of prudence. To pursue any other course would be to warrant the strongest condemnation. When the time for the consideration of quotas, the initiative about quantities would rest with Britain. In order that the Government might be in a position to negotiate with Britain, it had invited the collaboration of the States, and the industries concerned, in the consideration of principles and methods. All this work was preparatory, and did not in volve any commitment. Mr Lyons said that the regulation of imports by the United Kingdom might not mean a diminition of supplies from Australia below the present volume, but might check further expansion, if, therefore, owing to the protection of British agriculture and the commitments of the United Kingdom in her

foreign treaties, Australia was limited in the British market, it 3iad to do its utmost to secure new foreign markets. That involved bargaining on a wide Bcale, and the Government was already engaged on that task. The Government was actuated by a desire to secure the best possible conditions for the Australian primary producers, because it realised that prosperity for tliem meant prosperity for Australia. The Government would energetically explore every possible alternative to the acceptance, as final, of rigid restrictions of all markets.