EMBARGO ON IRON ORE

Otago Daily Times, Issue 23517, 4 June 1938, Page 20

EMBARGO ON IRON ORE

TO CONSERVE SUPPLIES JAPAN AFFECTED MOST (From Our Own Correspondent) ; SYDNEY, May. 23. Within a few days of threatening waterside workers with the Transport Workers Act for refusing to load scrap iron and tin clippings on Japanese, German and Italian ships, the Prime Minister (Mr Lyons) announced that an embargo would be placed by the Government on exports of iron ore from July 1. Japan was expecting to draw heavy supplies of ore from the Yampi Souna (Western Australian coast) deposits, where development had already begun- . . i This apparent inconsistency on the part of the Federal Government aroused strong opposition not only of the Labour Party, but of the Western Australian and South Australian members of the Government, who voted against a motion of adjournment to defeat the Government. . The decision to apply an embargo will mean not only a cessation or exports of ore from South Australia, but also the abandonment or the Yampi Sound deposits for export to Japan. It is understood, however, that the Federal Ministry has already begun tentative negotia : tions for the development of Yampi to supply part of the requirements of the Australian industry. Mr Lyons in his statement to the House of Representatives, said that the decision to put an embargo on exports had been made only after exhaustive examination of the position. Reports had satisfied the Government that accessible iron ore re* sources were so limited that they must-be conserved for Australian industry. A proposal to licence limited exports had been carefully considered, but the Gpvernment had come to the conclusion that such action would be inconsistent with the necessity to conserve the limited resources. ' _ “Up to 1936,” said Mr Lyons, “there was a general impression that Australia was so well endowed with iron ore that there was no cause for anxiety. The Government thought it would not be justified in curtailing exports. But, as there appeared to be some ground for doubt, it decided to instruct the Commonwealth Geological Adviser (Dr Woolnough) to make a report. In the light of his report, the Government is satisfied that the accessible iron ore deposits which can be economically developed are so limited that they must be conserved for Australian industrial requirements. The Government intends to proceed, in collaboration with the technical advisers of the States, with a complete survey of Australian resources. The Government hopes that this survey will result in the appearance of some reassuring features. If so, it will be prepared to reconsider its decision.” There will be protracted negotiations on the question of compensation for money spent on development work at Yampi Sound. No formal claim has been .made, but it is known that the matter has been raised in discussion with certain Japanese interests. The precise amount that has been spent has yet to be ascertained. It has been unofficially estimated to exceed £200,000, but this is regarded as excessive. *

In the meantime the waterside workers are frantically canvassing support from other unions to back them in a defiance of the Prime Ministers ultimatum to them to load all ships as required as from May ' ■