TRADE WAR IN EARNEST

Timaru Herald, Volume CXLII, Issue 20465, 9 July 1936, Page 9

TRADE WAR IN EARNEST

AUSTRALIAN DEFIANCE OF JAPAN COUNTER RETALIATION PLANNED United Press Association—By Electric Telegraph—Copyright (Received July 8. 9.1 p.m.) TOKYO, July 8. The press gives prominance to reports of counter retaliation by Australia, affecting silks and many other Japanese goods. These headlines have been used: "Australia defies Japan,” "The Challenge Means a Trade War in Earnest.’ A later message states that Mr Arnau of the Foreign Office, said that Australia’s new licensing system was likely to make Japan’s attitude more stringent. AUSTRALIA’S BOLD FRONT REPLY TO JAPAN’S CHALLENGE United press Association—By Electric Telegreph- -Copyright (Received July 8, 9.0 p.m.) CANBERRA July 8. It is officially stated here that no action has been taken by Australia since the duties on rayon and other textiles were increased There may. however be restriction on the volume ot imports of certain other Japanese goods by licensing This has been undei consideration since Japan instituted a boycott against Australian products. The Federal Ministry at present is expecting a further communication from Japan regarding her attitude. TWO OFFERS TO JAPAN LIKELY COST OF LICENSING SYSTEM United Press Association—By Electric Telegraph -Copyright (Received July 8, 11.30 p.m.) CANBERRA. July 8. As all the efforts by the Commonwealth Government to bring about a friendly settlement of the trade dispute with Japan have failed, action was taken to-night to endeavour to attain a basis of negotiation for the resumption of discussions. The Prime Minister (Mr J. A. Lyons) announced that the licensing system would be applied Immediately to 38 per cent, of the Japanese exports to Australia. The licensing system will cover a very wide range of Japanese merchandise, including wearing apparel of all kinds, piece goods, jewellery, fancy goods, tinned foods and fish and even bicycles and vehicles. Mr Lyons pointed out that two offers had been made to Japan, as follows: (1) That the discriminatory ordinances imposed both by Japan against Australian wool, wheat, flour and tallow, and by Australia should be temporarily suspended and the negotiations resumed; and (2) that, if the Japanese Government is unable to assent, then both ordinances should operate while the discussions continue. The Japani.se Consul-General (Mr Mural) visited Canberra by aeroplane to-day. accompanied by his economic adviser, Mr Nehro. and had a conference with the Prime Minister and Sir Henry Gullett The former were unable to indicate their Government’s reaction to the application of the licensing system. Mr Lyons Insisted to-night that the Federal M’nistry is acting in no retaliatory or punitive spirit. Representatives of the wool industry ’ J conferred with Mr Lyons, but no indication of the trend of the discusdons was ascertainable, as a further meeting is to be held next w»ek. On the b-isis of last year’s exports of 1,700,000 from Japan to Australia, the licensing system will cost Japan t ’2,280.000 annually.