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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Australia,   pp. 136-159 PDF (9.0 MB)

Page 154

that the policy was wrong in the first place. He said that he would
like to be able to report to his Government that we were pleased at
this step.
  Mr. Dunn stated that we do not have full information on the details
of this change in policy, but that Mr. Officer could certainly say that
we were pleased, and that we certainly regard it as "a step in the right
direction". Mr. Dunn went on to say that we had had a preliminary
telegram from our Consul General at Sydney which, according to his
recollection, stated that it was proposed, on 36 of the restricted prod-
ucts, to issue licenses immediately without any discrimination against
American goods, but that licenses would be continued on 44 products;
Mr. Dunn added that the language of the Australian official announce-
ment stated as regards these latter products that licenses would be
continued "as at present".
  Mr. Officer stated in reply that although his information is not
complete on the subject, he felt that he could assure us that there would
be no discrimination whatever against the United States in either of
these two categories. He said that this was clear as regards the first
category from his Government's announcement, and that as regards
the second category, pending a consideration of the question of
whether increased protection is justified, the Australian Government
proposes to continue a license system, but without discrimination
against American products. He went on to say that it is his under-
standing that most of the important products in which we are inter-
ested are included in category 1, for which licenses will be issued at
once, and that whereas there is reason to suppose that not many
licenses will be issued for the second category, there will be no dis-
crimination especially directed at the United States.
  At this point Mr. Officer stated that he hoped very much that the
United States could shortly see its way clear to remove Australia
from the "black list". Mr. Hawkins commented that our attitude
this matter must, under the law, be governed by the facts in the case
He stated that the President suspended our trade agreement rates in
the case of Australia 27 because he had found as a fact that Australia
discriminated against American goods, and that to remove this sus-
pension the President would as a practical matter have to find as a
fact that Australia does not discriminate against us.
  At this point Mr. Hickerson mentioned the fact that it is his under-
standing that Australia has signed agreements with Germany, and
perhaps other countries, under which she has granted tariff reduc-
tions which have not heretofore been extended to American products,
and that these rates will have to be taken into account along with
  27 See telegram of June 29, 1936, 6 p. m., to the Consul General at Sydney,
Foreign Relation8, 1936, vol. I, p. 763.

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