TRADE TREATY PLAN

Poverty Bay Herald, Volume LXII, Issue 18594, 3 January 1935, Page 7

TRADE TREATY PLAN

AUSTRALIA AND GERMANY LITTLE HOPE ENTERTAINED ■SYDNEY, Doc. 20. An authority on wool stated this week that if Australia were able to conclude a satisfactory trade treaty with Germany, the price of Australian wool would advance Iff per cent. It is probable that, this assertion errs on- the side of optimism, but the fact remains that, last week, when there were rumors of understanding between the two countries, there,was a distinct hardening of the market. The hopes that ran so high last week have since been replaced by a gloomy view of the prospects, and there seems little hope of any agreement being reached. At: the request of the Commonwealth Government, the German Consul-Gen-eral in Australia has submitted a list of specific German manufactures which Australia might buy in order that Germany could establish credits for the purchase of Australian wool. The majority of these items, 'however, are competitive with Australian and British manufactures, and protracted inquiries will be necessary ns to their effect on the British preferential tariffs, the Ottawa margins and how they would affect t'he favored nation treatment which Australia gives to other foreign countries. One serious obstacle to the conclusion of a trade agreement is that Germany is on the gold standard and would require enormous tariff concessions to-enable her to export goods to Australia. the whole position has caused the Government great concern, and special meetings of the Cabinet have been held m the hope of finding a way out.