MR BRUCE’S MISSION

Wairarapa Times-Age, 23 December 1938, Page 5

MR BRUCE’S MISSION

GOOD IMPRESSION MADE IN UNITED STATES OBSTACLES TO TRADE NEGOTIATIONS. NEED FOR EXTENDED STUDY. By Telegraph—Press Association—Copyright. WASHINGTON, December 22. The impression prevails here that the visit of the Australian High Commissioner in London, Mr Bruce, was what the French would call a “success d’estime” and this term is used in a highlycomplimentary 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 remains the fact that both countries produce similar products. It appears that Mr Bruce feels that something concise is not outside the realm of practical possibility, and 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. While American officials recognise that there will be deep disappointment in Australia concerning the present unreadiness of the United States of America to start negotiations, there is an earnest desire that the Australian people should genuinely understand the situation. POLITICAL COMPLICATIONS. American sources emphasised to the Australian Associated Press today that it would be mischievous to intimate that the United States of America “had let Australia down or that Mr Bruce’s visit was abortive.” Political consideration (such as the possibility of an outstanding Democratic victory in the 1940 Presidential election), the similarity of products and a host of technical difficulties over negotiations make an agreement impractical now. It is recognised, however, that the United States of America ultimately must make concessions to Australia in order to retain the profitable Australian market for manufactured goods . Eighteen months hence such concessions may be easy, whereas today they might mean political suicide. The Australian Associated Press says that it is understood that the Australian authorities have made a minute investigation of the American market for wool and meat, and contemplate a study of the butter market and possibly of fruit and wines. It is understood that on the basis that America’s highest importation of wool from Australia is approximately 75,000,000 pounds in one year, Australian sources feel that an assurance of an 8 per cent reduction of duty now that American wool prices are near import parity, even if the United States fixed a 50,000,000 pound quota, would give Australia a profitable wool market here. SUGGESTED MEAT QUOTA. Concerning meat, it is felt, that, if Australia could obtain a half per cent, quota of America’s approximately 6,-000,000-pound annual consumption, she could meet price competition successfully here. A preliminary study shows that any appreciable reduction of the butter tariff, say of four cents, would give Australia a good advantage during those recurring period when American butter prices are high. Fruit offers a modest but worth-while off-sea-sonal market. The American authorities insist that the question is not one of tariffs, but of sanitary quarantines. American interests declare that, even if tariff concessions were granted for Australian wines, they still would 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 most-favoured-nation provisions. It is felt that the United States of America would upset the economic law if it attempted to give Australia concessions in the directions indicated above, and that they would merely be “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 of America if 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 to make the American consumer merino-conscious? Experts here insist that, till Australia improves her meat qualities and her methods of handling, tariff concessions would be valueless.