TRADE BOMBSHELL

Poverty Bay Herald, Volume LXIII, Issue 19024, 26 May 1936, Page 5

TRADE BOMBSHELL

NEW AUSTRALIAN TARIFF AMERICAN REPERCUSSIONS DEEMED BACKWARD STEP LOWER WORLD VOLUME (Elec. Tel. Copyright—United Tress Assn.) (Reed. May 26, 11.10 a.m.) NEW YORK, May 25. The announcement of the details of Australia’s now tariff regulations as affecting American manufacturers was a “bombshell,” in.the opinion of exporting circles here who have literally besieged the Australian Government office in an effort to obtain a further clarification of the situation. The Australian Associated Press learns that while inquiries from a wide variety of exporters were received, two particular groups seemed most concerned, notably women’s dress and perfume merchants and motor manufacturers. , . ■- ■ •-•-■■ - : ■

s lt is understood that Gen.efal Motors, Limited, has instituted • inquiries 'both here and at Washington. The 'president of the export branch, has went! word to-Va correspondent, however, that the company is not yet ready to issue a statement, since the officials wish to familiarise themselves more thoroughly with the situation. COST TO CONSUMERS ' Washington officials indicated to the Australian Associated Press that Australia’s new import duties constitute “ a backward step toward a reduction of the volume of world trade and increased cost for consumers. It is generally, assumed that the new duties and licenses will injure the United States sales fort many important products, but restraint, iu comment indicates an absence of atiy disposition to quarrel openly with Australia or to i’etaliate at present.

Direct official comment was confined to observations that Australia had acted within her rights although the United States believes that the action was. wrong. It was added that sufficient de : tails had not yet been received from Canberra to estimate accurately Hie damage upon the United States. ..... .. _ It was again stressed that America’s world trade programme is clear and that America is anxious to reduce world import obstructions, in the theory that each nation produces- the best and cheapest of certain materials for which it is Suited by geography or specialisa.tion. By enlarging world trade generally ill such items, all nations could dispose profitably of their surplus materials without seriously damaging, the purchasernations, and with lowered costs to consumers.

Multilateral treaties with the trade channels relatively free are desired. That this is rather, hard to achieve, however, seems indicated by three volumes of tariff changes-in ■ tne World during the past year airesUy«y the American Government, almost all constituting an increase in the rates on certain types of goods. , •

STREAM OF MIGRATION " POSSIBLE RENEWAL (Reed. May 26, 11.20 .a.m.) SYDNEY, May 26,' The Prime Minister of Australia, T Mr.-J, A. Lyons, in a, speech at the Royal Society's annual Empire Day dinner, said the renewing of the stream of migration, no matter • how small it might .be, was a response ibility that rested on Australian arid . Britain. Mr. Lyons added that the tariff changes would make migration again possible. - : : ; ' The Prime Minister pointed out that'; the new tariff had a/two-fold, pntpose —to provide preference for British _ goods, and creating markets for Australian .primary. ..products- , and the stimulation of Australia’s secondary industries. The ultimate aim was tho resumption of immigration from Britain on a moderate serile.

POSITION OF JAPAN MINISTER’S REASSURANCE CANBERRA, May 25. Sir Henry Gullett, Minister in Charge of Trade Treaties, said that, so far, he had received no official protest from Japan in regard to the new Federal tariff. He was confident that, when the position, was fully examined, Japan would see that her-trade would not bo adversely- affected—to any extent.

A Tokio message says that referring to the Australian tariff measures Mr. Arita told the Lower House that the Government must now take counter measures to protect Japan’s trade interests after consulting the organisations involved, but he hoped Australia would speedily re-consider its decision. . A .