QUEST FOR TRADE

Poverty Bay Herald, Volume LXV, Issue 19820, 23 December 1938, Page 5

QUEST FOR TRADE

NEW TREATY AIM

MISSION OF MR. BRUCE

AMERICANS IMPRESSED

EARLY ACTION UNLIKELY

FUTURE NEG OTIATIONS

(Elec. TeJ. Copyright—United Press Assn.)

(Reed. Dec. 23, 9 a.m.) WASHINGTON, Dec. 21

The impression pervails that the visit to Washington of the Australian High Commissioner, Mr. S. M. Bruce, was what the French would call “success d’estime,” and this term is used in a highly complimentary sense, for it is widely admitted that he effectively impressed all those with whom he conversed concerning trade matters that a treaty between the United States and Australia transcended in importance the mere commercial items it might contain.

Mr. Bruce told the Australian Associated Press that he found almost universal willingness and desire to conclude some arrangement, but he was compelled to recognise that the present moment was not propitious.

The basic difficulty is the fact that both countries produce similar products. It appears that Mr. Bruce reeis that something concise is not without the realm of practical possibility, and it seems he feels that too much time should not be allowed to elapse before writing some sort of instrument. Now that he is familiar with the situation, the ground will be cleared for a useful instrument if some future occasion makes such an advance possible.

Earnest Desire While American officials recognise that there will be deep disappointment in Australia concerning the present unreadiness of the United States to undertake trade treaty negotiations, there is an earnest desire that the Australian people should genuinely understand the situation. American sources to-day stressed to the Australian Associated Press that it would be mischievous (to intimate that the United States had “let Australia down or that Mr. Bruce’s visit was abortive.” Political considerations (such as the possibility of an outstanding Democrat victory in the 1940 presidential election) the similarity of products and a hos>t of technical difficulties over the negotiations made an agreement impractical just now.

It is recognised that the United States ultimately must make concessions to Australia in order to retain a profitable Australian market for manufactured goods. Eighteen months hence such concessions may be easy, whereas to-day they might mean political suicide.

Wool and Meat - The-. Australian Associated Press says it is understood that the Australian authorities have made minute investigations of the American market for wool and meat, and contemplate the study of butter and possibly of fruit and wines. It is understood that, on the basis that America’s highest importation of wool from Australia is approximately 75,000,0001 b. in one year, Australian sources feel that an assurance of an eight cents reduction in duty, now that the American wool prices are near import parity, even if the United States fixed a 50,000,0001 b. quota, would give Australia a profitable wool market here.

Concerning meat, it is felt that if Australia could obtain a half per cent quota of America’s approximate 6,000,000,0001 b. of annual consumption she could meet the price competition successfully here. Tariff on Butter

A preliminary study shows that any appreciable reduction in the butter tariff, say four cents, would give Australia a good advantage during tnose recurring periods when American butter prices are high. _ Fruit offers a modest, but worth while offseason market. The American authorities insist that the question is not one of tariffs, but sanitary quarantines.

American interests declare that even if tariff concessions were granted for Australian wines they would still be unable to compete against other wines. The high alcoholic content of Australian wines must put them under a tariff disadvantage, which otherwise they would overcome under the most-favoured-nations provisions.

“Paper Concessions”

It is lelt that the United States would upset the economic law if an attempt were made to give Australia concessions in the directions indicated above and ithat they would be merely “paper concessions.” American sources insist that Australian sales methods are not the best, despite the existing tariff and that Australian products could have a wider sale in the United States if the producers knew how to go about it. American authorities ask what has Australia done to make direct American bidding at the Australian wool sales attractive, or the American consumer Merino-conscious. Experts here insist that, until Australia improves her meat qualities and methods of handling, tariff concessions would be valueless.