TRADE WAR

Wairarapa Daily Times, 25 May 1936, Page 5

TRADE WAR

AUSTRALIA’S TARIFF GENERAL SATISFACTION. Press Association Electric TelefiraDh—Copyright SYDNEY, Sunday. Apart from wool growers, who fear that Japan may be irritated and may •even seek reprisals, the announcement of Australia’s new tariff has caused general satisfaction. The motor trade of the Commonwealth is reported to have received its biggest surprise for many years, while far-reaching readjustments of trade with exporting countries are expected to begin almost immediately. A substantial increase of employment in most of the protected industries is forecast. Importations of United States and Canadian chassis are to be restricted to 50,000 a year. There are no restrictions on Japanese rayon, on which the rates of duty have been slightly increased, but large Australian purchases are likely to be diverted to Japan at the expense of the United States. The trade in fashion goods from America, except as samples, will, it is expected, be diverted to France, which is a good customer of the country. The United States will lose almost its entire Australian ,trade in refrigeration plant, toilet preparations, machinery, boots and shoes, paper and other manufactured products. “THE OPENING SHOT.” TOKIO, Saturday. The Press features Canberra’s “antiJapanese measure,” headlining it as the opening shot in a trade war, and comments on the wreck of the treaty negotiations. . The Press also reports that. Mr Brennan, the South African trade commissioner, who is touring western Japan, is actively canvassing Osaka business houses and Nagoya woollen mills for wool and other South African goods. LONDON VIEW. LONDON, Saturday. Political quarters are favourably impressed with the Australian tariff changes, especially as they are made unconditionally. ,-Lest foreign countries adversely affected should associate the revision with joint Anglo-Australian action, it is emphasised at Whitehall that no preliminary soundings were taken here. The changes are expected to minimise the problem of revising the Ottawa Agreement, and are approved on the ground that such decisions are better made individually than when thrashed out at large-scale conferencGS. The “Daily Mail” says that Australia’s action makes it more than ever a matter of honour and self-interest that Britain should reply by introducing a straight tariff with a thoroughly effective preference to Empire products. ' '' ;

In the House of Representatives at Canberra, the Minister for Trade Treaties, Sir Henry Gullett, announced what be termed the first step in a considered policy to place Australia’s overseas financial affairs in a sound and enduring position. He said that the Government had adopted a licensing system over a limited range of imports, over which it would impose higher duties should that course be deemed desirable. By this means the Government hoped to divert a certain amount of Australia’s import trade from countries which had been very indifferent purchasers of Australian exports. The main points of the Government’s policy are: —New specific duties on foreign textiles. New duties on foreign cotton piecegoods. An additional duty of ,7d per pound on all imported motor chassis and parts and the payment of a bounty on local motor engine production. Imports of chassis from the United States will be restricted to import levels for the year ended 30th April, 1936. With a view to diverting a certain amount of import trade to Australian secondary industries, the Government intends to prohibit the importation of a large variety of goods and commodities from countries outside the British Empire, except with the consent of the Minister of Customs. He went on to explain how Japanese textile interests would be affected, and said that the Government was not prepared to allow imports of low-priced foreign textiles to continue unchecked.