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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 158

taken up by the United States and Great Britain (see last paragraph
of my telegram December 9, 9 p. m.).
  2. (Refer to your 4 (b) and (a). According to Moore, Australia
is not asking most favored nation tariff treatment from the United
States and would not in the absence of a trade agreement accord most
favored nation tariff treatment to us (in this connection please refer
to Doyle's report dated December 16, 1935 entitled Australian tariff
amendments November 29, 1935 30).
  3. Moore submitted to me a new list of unrestricted items in addi-
tion to the 34 items published December 8 and has since added to this
list. Situation now is that licenses are being granted freely for all
85 original items except 21 of which number licenses are being granted
for 4 on a quota basis. I am working with Squire on an estimate
based on the changed situation and will telegraph you further when
I am in a position to do so. Moore estimates the percentage of total
American trade affected by the restricted items as low as 1.56%o which
I feel certain will not be corroborated by Squire.
  Nevertheless what Moore has done in removing 64 items from the
restricted list of 85 together with assurances I have received of inten-
tions to continue along these lines has convinced me that grounds for
holding that substantial discrimination exists are in great measure
disappearing; furthermore, that the Australian Government is mak-
ing a determined effort to move the whole licensing system as quickly
as possible in accordance with the statement made by Colonel White
on December 7.
  4. (a) and (b). See the foregoing and, with reference to your
phrase "any form of discrimination", note Australia's insistence
a distinction between "substantial" and "technical or actual"
  4. (c). Moore gave me his definite assurance that no tariff revision
would be undertaken for negotiating purposes, that absolutely no
tariff padding was intended or would be done and that the only tariff
revision contemplated would be in protection of Australian industry.
  5. Lyons' talk was earnest and convincing. He expressed feelings
of great friendship towards the President and yourself and assured
me definitely that the licensing system was to be abolished as soon as
possible but added that commitments made some time ago to Aus-
tralian industries together with political risks do not allow him at
the present time to do more than has been done. He added that if the
United States demands more and requires that Australia "toe the line"
he must refuse; that although the licensing system will go positively in
time irrespective of our action he would then have to rely on "other
" Not printed.

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