TRADE RELATIONS

Otago Daily Times, Issue 23558, 22 July 1938, Page 9

TRADE RELATIONS

BRITAIN AND AUSTRALIA THE LONDON DISCUSSIONS OTTAWA PRINCIPLES STAND (United Press Association) (By Electric Telegraph—Copyright) CANBERRA, July 21 The Australian trade delegation’s discussions with the British Ministers in London failed to secure a modification of the principles of the Ottawa agreement which govern British trade with Australia It is proposed that these principles, which are contained in Articles 9 to 13, should eventually be replaced by a system of specific maximum duties on British goods. The terms of the understanding reached in the discussions are set out in a White Paper presented in the House of Commons, the text of which was released simultaneously in Canberra. The Australian Government will forthwith investigate the possibilities of the new system, after determining the lines of development of secondary industry in Australia. Pending the decision of the Australian Government on the new system, the present Ottawa agreement will continue in force,

WHITE PAPER ISSUED EMPIRE' PROBLEMS DISCUSSED (British Official Wireless) RUGBY, July 20 (Received July 21, at 5.5 p.m.) The conclusions reached in the British and Australian trade discussions have been issued as a White Paper. It is stated that not only have the existing preferential arrangements between the two countries been examined, but Empire problems have, in a spirit of mutual sympathy and goodwill, been considered in the widest aspects with a view to ensuring the maximum mutual cooperation in their solution. The memorandum recalls that in the Ottawa agreement of 1932 arrangements were made to meet the difficulties in Anglo-Australian trade relations—which are analysed—by the provisions of Articles 9 to 13. and observes that these articles have worked in practice fairly satisfactorily. They have been criticised, however, and the two Governments have been engaged for some time in view of various matters arising from them. It has proved impracticable to revise the articles to satisfy the requirements of both countries and so, with a view to the adoption of an alternative solution—namely, a schedule of maximum rates of duty —Australian Ministers have stated that the Commonwealth will investigate the possibilities. In the meantime, pending a decision by the Commonwealth, the present agreement is to continue in force, though in order to obviate certain past difficulties Britain has agreed not to press its objections to the interpretations now placed by the Australian Tariff Board upon Article 10, while Australia has undertaken to make every effort to ensure that the Tariff Board recommendations under Article 11 are made effective.

With regard to the marketing of primary produce in the United Kingdom it is felt by both parties that in the present state of trade the interests of all parties could best be served by orderly marketing secured by collective action on the lines of the arrangements for the Empire Beef Council and the International. Beef Conference. MR LYONS RETICENT BRISBANE, July 21. (Received July 22, at 1.30 a.m.) The Prime Minister, Mr J. A Lyons, who is visiting Queensland declined to comment on the outcome of the Australian trade negotiations with Britain.