HARD BARGAINING AT TRADE TALKS

Chronicle (Levin), 21 May 1947, Page 5

HARD BARGAINING AT TRADE TALKS

(Special Correspondent.)

LONDON, May 19. The expected period of hani bargam-i-,g is iiow well under way at the lriternatbmal Trade Conference at Genevu :ml so long as it eontinues it may he :t-.-umel that progress is being made. The conference iias now been in session 1'tir a little over a niontli and if it lasts l'nr another month with the various ti-ains still in the field, it will be an enc.uiraging augury of eventual success. The biggest danger is that one or anoiiier important delegation may decide that it has nothing more to offer — dr to gsiin — and pack up. It is not disguisetl tiiat the escape elauses with whicli the "Amerieans proteeted themselves, ana also the sudden approval of bonus pavlimnts on Ameriean wool, have eaused imcasiness among the British and Dotidnions' delegations. They stand iirm ou the eontention that before they can mahe concessions to the Amerieans or rc.luce Imperial preferences, tliey musi l.c sure they are not surrendering tne suli>tance for the shadow. It is recognised that concessions whicli are hedged about with escape ciauses, must be verv susceptible to tne politirnl nioods of tlie moinent and that lliis does not provide a firm euougn guarantee of a quid pro quo for any rediictioiis tlie Commonwealtli may mahe. Sueh reductions might well enn ail a loss of marlcets in other qiiarters and these could not be regained n Amerieans saw fit to cliange their minds. The New Zealand delegation, for instance, is unlikelv to forget that be tween the wars a profitable trade it! chewings fescue seed built up bv Soutli land farmers with Unitfed States, wa*3 destroyed overniglit beeause a small group of Californian farmers contended Ihat Xew Zealand competition was injuiing tliem and prcvailed upon Con grcss to introduce a prohibitive duty If New Zealand were to be asked to niake concessions in order to sell to rnited States, she must be guaranteed against any repetition of this iitcident. Another aspect receiving eonsidera tion Is the probable cost of transporf charghs and their possible influenci u [ton trade. The rfemoval or scfiling down of certain Ameriean duties ii\ re tuni for corresponding conefefesibns by New Zealand, would be of small valu" if i'reight charges were raised to offsfe the reduetious.