Evening star., 1937-12-09
AUSTRAL|AN-U. s.
TRADE PEACE SEEN
License Modification May
Erase Country From
American Blacklist.
By CREsTON B. MULLINS.


Clariflcation Of American Australian
trade relations appeared imminent TO-
day, although United States cfi1cislss
still waited for some overture for
the Australian government for modin-
cation OF the trade licensing system
which impelled President Roosevelt to
blacklist" Australia In July, 1895,
from the benefits of tariff reductions
in reciprocal trade agreements.
Prospect that the two-and-a-half-
year-old ''feud" between the Australian
and American governments was to be
settled presently arose Tuesday with
the announcement in Canberra BY
Australian Trade Minister T. H. White
that the commonwealth would aban-
don its system of trade licensing in
favor Of protective duties.
Although this is not to be completely
accomplished until March, he de-
clared, licenses will be issued on non
competitive goods without regard for
country OF origin. Present restrictions
on competitive goods will be retained
until the change is effected, he added.
Full Assurance Awaited
Despite the interest with which off-
cials here are following the develop
ment OF Australian commercial policy.
they planned no move toward relaxa-
ton in use Of the retaliatory provisions
OF the Reciprocal Trade Act of 1894
until 1t was made clear from Australia
that discrimination against American
goods was definitely at an end.
The Reciprocal Trade Act contained
a clause for generalization to all coun-
tries which did not discriminate
against American goods of tariff re.
ductions made in reciprocal trade
agreements. Specific authorization was
given to withhold these BENEFITS from
countries found favoring the commerce
OF other nations at the expense Of the
United States.
Under this clause retaliatory action
was taken against Germany in 1884
when the latter abrogated the most
favored-nation clause of the German
American commercial treaty, and
against Australia in the summer Of
1885 when the import licensing system
was inaugurated.
Pay Hawley- Smoot Rates.
Both these countries now paw Hav-
ley-Smoot rates on all exports to the
United States, rather than the lower
rates granted in the l6 reciprocal
agreements now in force.
Abandonment of the licensing svs-
tenn would be accepted in official cir-
cles here more as evidence Of Austria
liam intention to cooperate toward the
success Of approaching negotiations
for an Anglo-American trade agree
ment, than as an important factor In
the negotiations themselves, for Great
Britain undertook to obtain the neces-
sary surrenders TO preference on the
part OF the dominions.
Inc extent to which Australia
showed her willingness to Cooperate
IN this respect might determine the ex-
tent OF the administration willing.
ness to negotiate later for an Austria.
llan-Amerlcan agreement, which Aus
tralia has long sought.
Largely Hinged on Elections,
Termination of the "feud" depended
largely on the Australian elections a
month ago, in which Premier joseph
Lyons was returned to power, al
though conditions in Australia have
been favorable for more than q wear.
The licensing system was initiated
by Australia with three expressed pur-
poses:
I'd To enable Australia to meet her
debt service of some $4,000, 900 pounds
sterling annually in London.
CD To build up the Australian
financial reserves, which had shrunk
to nearly 100000 pounds as the re-
suit of perennially unfavorable trade
balances; and
I'D To correct heavy unfayorable
balances with the United States which
IN the 10 years prior to 1885 had
amounted to 5000, 100000.
These conditions had been fulfilled
before trade licensing was used a year
and half, but movement to terminate
1t was postponed in the face of the
| approaching elections.
The United States will be receptive
now to the restoration Of Australia To
most-favored nation status. but. it Is
insisted. removal of discrimination
there must be complete.