EXPORT OF IRON ORE BANNED

Southland Times, Issue 23540, 21 June 1938, Page 7

EXPORT OF IRON ORE BANNED

AUSTRALIAN DECISION TO STAND CABINET’S REPLY TO JAPAN NOT DIVULGED (United Press Assn. —Telegraph Copyright) (Received June 20, 9.5 p.m.) CANBERRA, June 20. The Prime Minister (Mr J. A. Lyons) told the House of Representafives today that there would be no postponement or reconsideration of the embargo on the export of iron ore from Australia. , Mr Lyons declined to divulge the terms of the letter sent to the Japanese who had intended to exploit the deposits at Yampi Sound, North-West Australia.

Mr Lyons announced in the House ot Representatives on May 17 that the Government intended to prohibit the export of Australian iron ore as from July 1. Claims lor reimbursement of expenditure already incurred on the exploitation of iron ore for export, he said, would be examined and dealt with equitably. The Government had acted on an expert report that the accessible iron deposits capable of economic development were so limited as to compel their retention for Australia’s own industrial needs. The embargo will particularly affect deposits in Yampi Sound, Northwestern Australia. which are under lease to the JapanThe spokesman of the Japanese Foreign Office (Mr Tatsuo Kawai) in an exclusive interview with the Australian Associated Press on May 25 said that Japan profoundly regretted the Australian prohibition of ‘ the export of iron ore from Yampi Sound, which it regarded as an act of bad faith by the Commonwealth Government, having regard for the large amount of Japanese capital invested there. “Australia had already raised high barriers against foreign migration and merchandise,” he said, "and if, as in the present instance, she assumes an isolationist policy, for example, by means of an embargo on iron ore, it will not only be against equity but will be conducive to a straining of international relations and will be detrimental to friendship between Australia and Japan. Japan urges Australia seriously to reconsider her action.” The Japanese Consul-General in Sydney (Mr Wakamatsu) forwarded to Mr Lyons a further Note about the Australian embargo on the export of iron ore, urging reconsideration, failing which the Japanese Government, he said, was likely to stand behind the Yampi Sound Interests, which intended to claim at least £500,000 from the Federal Government. Mr Wakamatsu, explaining the Japanese viewpoint, declared that such an embargo was against world opinion, which favoured giving all nations access to the necessary raw materials and freeing them from obstacles to national trade.