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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 153

  Government proposes to investigate immediately all commodities
on prohibited list not included in list of 34 (telegram of December 8,
6 p. m.) to determine whether additional tariff protection is necessary
but regard must be paid to assurances given Australian manufacturers
to protect industries established as a result of diversion policy. Where
additional protection not necessary steps will be taken to issue licenses
freely for United States goods.
  Arrangements will be made simultaneously to issue licenses freely
for United States goods at the time higher tariffs, where decided upon,
are imposed. When tariff legislation is introduced early next year
diversion policy should disappear.
  Situation with respect to motor chassis will remain unchanged with
regard to United States and Canada until the final policy is deter-
mined with respect to manufacture in Australia.
  Australian Government trusts that United States will take the view
that there is now no substantial discrimination against the United
States. Australian Government is most anxious to enter into explor-
atory discussions with the United States Government simultaneously
with negotiations between the United States and United Kingdom
and is prepared to send officials immediately to Washington. End of
Moore's statement.
Memorandurm of Conversation, by the Assistant Chief of the Division
                 of European Affairs (Hickerson)
                                [WASHINGTON,] December 10, 1937.
Participants: Mr. Dunn25
              Mr. Hawkins 26
              Mr. Hickerson
              Mr. Keith Officer of the British Embassy
  Mr. Keith Officer came in at 12: 15 today after having made an ap-
pointment with Mr. Dunn. Mr. Officer referred to the British Am-
bassador's call on the Secretary yesterday, at which time he left with
the Secretary, without comment, an official press statement of the
Australian Government in regard to a modification of their trade
diversion policy. Mr. Officer stated that he was very much pleased at
the action which his Government had found it possible to take. He
stated that there had been some delay of course because of the necessity
of reorganizing the Cabinet, and that, moreover, it had been necessary
to convince certain members of the Cabinet of the wisdom of taking
this step. He went on to say that it is not an easy matter for a Gov-
ernment to alter a policy of this sort, particularly because of the fact
that any alteration necessarily carries with it a certain implication
" Appointed Adviser on Political Relations, July 17, 1937.
2"Harry C. Hawkins, Chief of the Division of Trade Agreements.

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