BID FOR TRADE IN AUSTRALIA

Timaru Herald, Volume CXLIII, Issue 20669, 6 March 1937, Page 17 (Supplement)

BID FOR TRADE IN AUSTRALIA

IMPROVED RELATIONS

DESIRED AMERICA’S VIGOROUS GESTURE United Press Association—By Electric Telegraph- Copyright (Received March 5, 10.35 p.m.) WASHINGTON, March 4. The Associated Press canvassed the field of Australian and American relations among responsible officials, in an effort to determine the position, as it will be presented to the Australian officer, when he arrives here. Cordial Welcome Assured. The officer will be cordially welcomed, and an earnest effort made to deal with problems in a spirit of concession and understanding of Australian needs. Balancing Trade. The Australian satisfaction over the redress in the balance of trade is heartily shared. It is appreciated that, if wool imports can continue, the desired balance would be maintained in 1937, and it is generally agreed that a reduction in the tariff on wool may be essential. While officials are reluctant to promise such reductions, they intimated that the wool position affects not only Australia but Argentina, South Africa and other wool exporters, and the possibility of general pressure to make a re-examination of the high wool duties will be necessary. The State Department sees every increase in direct American purchases of Australian goods, as the best corrective of the present trade tension. The correspondent was reliably informed . that the negotiation of an Australian-American reciprocal trade treaty may not be expected until Australia voluntarily cancels what America considers discriminatory tariff restrictions. Attitude to Ship’s Subsidies. The official American position concerning the shipping situation can be said to be as follows: It is surprised that the competition supplied by the United State? lines in the Pacific, is considered unfair, and holds that British shipping has always . been heavily subsidised. It feel? that American lines have .'.eveloped the Australian and New Zealand passenger traffic enormously, from 150 passengers a month a few years ago to 500 now, of whom 250. are tourists. There is traffic enough for British lines also, and these are welcomed. There is concern over the Tasman laws, but the Department hopes that these will not be instrumented and it will net be necessary to deprive American lines of their share in Tasman revenue, which annually amounts to approximately £50,000, particularly now that two British vessels will also be subsidised. Position of Pacific Shipping. The Associated Press learns authoritatively that, only after protracted discussions between British and American officials, has there arisen a real appreciation of the true merits of the British position concerning Pacific shipping. The British view point has been made clear to the State Department, that a genuine difference' exists between of such. a moderate r ature, that they aid lines which legitimately serve a worthy, national purpose, and subsidies of such an unrestricted nature that they become instruments for driving competition from the seas or the use the taxpayers’ money to enable favoured private interests to accumulate large profits. This viewpoint can be said to have made a definite impression on the. American official mind, and there is some reason to believe that certain influential, quarters view with satisfaction the Impending revision of American subsidies and allowances, particularly if they are downward. Improving Trade Relations Altogether the canvass leaves the impression that American receptivity toward the idea of making a variety of necessary concessions in the interests of mutually satisfactory Australian and American trade relationships, is greater than at any time before, and that the belief prevails that the Australian Government is also ready to meet the American Government halfway. ... .