USTRALIA sent to England three leading Federal Ministers Mr. Menzies, Attorney General; Sir Earle Page, Minister of Commerce; and Mr. White, Minister of Customs—to arrange with the British Government the terms of renewing the Ottawa pre+ ferential trade agreement, which has expired, The old agreement contained four clauses to which there was strong Australian objection.
One of them provided that in tariff revision Australia should: fix duties that would give British manufacturers rights of reasonable competition in the Australian market with Australian manufacturers.
Another set forth that mo new Australian duties should be imposed against Britain and no in4 creases be made in duties unless the changes were recommended by the Australian Tariff Board, consisting of officials. These clauses were thought to be an interference with Australia's fiscal autonomy.
A section of British manufacturers has resolutely objected to the Commonwealth's protectionist policy. For many years, Australia gave them rich preferences without reciprocity and these preferences still operate. The depression that began in 1930-31 reduced the Commonwealth's importation of British goods by about two-thirds, but the figures improve annually and it is more than probable that this country will again become Britain's second-best customer.
The. conference of British and Australian Ministers reached a deadlock. The objectionable clauses were ultimately shelved upon Australia's representatives undertaking to make an industrial survey in order to determine, if possible, a schedule of fixed duties favoring British trade. The interpretation of the understanding arrived at is being hotly discussed. One section holds that the investigation is to determine the secondary industries that Australia will not encourage. The other section holds—and its interpretation is supported by the Commonwealth Government—that the enquiry will concern merely a possible new schedule of preferential duties.
One thing is certain—the Australian Parliament is by no means likely to make any concession that. will adversely affect any of its secondary industries, which support, directly and indirectly, probably 60 per cent. of ihe population. Australia contends that an all-round development of the country will give her increasing value as a British customer. Her people are anxious to buy "British," and as Britain is their best customer for rural exports, they want to give preferences that will be an adequate recompense, Government Money and Industries The high level of prosperity reached in Australia during the last two years is reflected in the preliminary financial returns of the Federal Government for the year ended June, 30, 1938. Revenue, particularly receipts from Customs and excise, was buoyant, the year's total of £89,458,- 000 being £6,650,000 above that of the previous year. Expenditure increased by £4,428,000, making its total £85,960,000, and leaving a surplus of £3,498,000 on the year's transactions.
The preliminary estimate of Aus. iroha's wool clip for the 1938-39 season reflects the unfavourable conditions experienced in large sections of the eastern States during the last six months. It shows a decrease of 221000 bales—equal to 7 per cent—on the quantity produced during the season just ended. Lamb raisings also have been adversely affected, notably in the Riverina district of New South Wales and parts of nor-them Victoria, indicating a drop in the number of early lambs available for freezing.
The outlook for wheat production is generally satisfactory, but the harvest is still several months off, and conditions during that period will largely determine the yield.
Export statistics indicate a larger production of butter during the twelve months ended June this year, the relative figures being 81,016 tons valued at £9,630,840, as compared with 77,816 tons, valued at £8,801,643 for 1996-37.
Text read from the printed page and cleaned; old type leaves the occasional error.