AUSTRALIAN TARIFF.

Sun (Christchurch), Volume VII, Issue 1912, 31 March 1920, Page 8

AUSTRALIAN TARIFF.

EFFECT ON BRITISH MARKET. A WELCOME PREFERENCE. " By Cable. — Press Association. — Copyright. Australian aud N.Z. Cable Association. (Rec. Mar. 31, 10.10) LONDON, Mar. 29. Australian mercantile circles are anxiously awaiting full details of the tariff proposals. The general feeling approves of the removal of the embargoes, and the granting of preference to Great Britain and the Dominions with limitations where the economic conditions are lower than Australia's. Some merchants consider that the new tariff must cause a reduction in British exports to Australia. Mr Tredwen, chairman of the Australian Merchants' Association, says:—"While giving us welcome preference over foreigners, Australia evidently does not want to encourage imports. This may raise a difficult position regarding shipping." Mr Tredwen states that at present steamers are going to Australia with only quarter cargo. The increased tariff will mean that still less cargo will be shipped, and fewer steamers will load for Australia. It is therefore likely that there will be insufficient tonnage to lift all Australia desires to export. There will possibly be increased freights for produce to Europe. Soft goods traders in resnonse to Australian Press Association inquiries state that they do not think the proposed increased tariff on woollens will adversely affect trade, particularly while present conditions in the world prevail. The full effect of the tariff will not be realised until pre-War conditions arc resumed, but it is likelv that Australian competition with England for many years to come will be confined to lower, medium cloths. Even then, it is doubtful whether Australia will be able to produce sufficient for its own needs. The tariff, together with the high cost of production, and other charges, will be sufficient to exclude the export of English cloths of the first quality to the extent to which the Australian production will fall short of the demand. Regarding the better, solid worsted sfoods, the effect of the extra tariff will not be appreciable except to increase the cost to Australian purchasers. The machinery, plant and skilled labour are all wanting in Australia to enable her to compete seriously in the production of highly-finished cloth.