SHORT-TERM QUOTA

Dominion, Volume 28, Issue 86, 5 January 1935, Page 11

SHORT-TERM QUOTA

Reported Agreement By Australia STATEMENT BY PRIME MINISTER Proposals Modifying British Plan V By Telegraph.—Press Assn.—Copyright. (Received January 4, 8.15 p.m.) Melbourne, January 4. The “Sun” says that until the position has been clarified by a full statement of conditions governing the acceptance by the Commonwealth of Britain’s demand for restriction of meat exports, local interests will be unable to judge the effect of the Commonwealth’s decision. Although it is not officially announced, the Federal Cabinet agreed to Britain’s request for voluntary restriction for a short term, preferably the first three months of the year. The Prime Minister, Mr. J. A. Lyons, to-night made the following statement: “The Commonwealth Government has made proposals modifying the three months programme suggested by the Government. We have at the same time indicated this to be purely a temporary arrangement, and that we are in the mutual interests of the. United Kingdom and the Commonwealth opposed to any general or permanent policy of restriction. “The whole problem will be discussed between the two Governments during the forthcoming visit of Commonwealth Ministers to London. In the meanwhile no details can be given as the matter is still the subject df cable messages, but it can be stated that every step has been taken to protect the interests of producers and exporters of Australian meat.” It is believed that while unable to accept quotas for various clashes of meat suggested by Britain, the Federal Ministry has made counter proposals which require the serious attention of the British Government. A message dated January 3 stated that the Federal Cabinet sat till late that night on the meat restriction proposal. Although no decision was announced, it was understood that Cabinet. would send a communication to the British Government agreeing to restriction for three months, provided that the British Government was willing, to raise the larger issue of the future of meat imports and Empire trade generally at another such conference as that at Ottawa, when Australia would press for the aboljtion of the quota system in favour of tariff preferences for Empire goods over foreign goods. A . PROVISION . MADE Meat, From Free State EFFECT ON AUSTRALIA ' London. January 3. The Dominions Office has not issued any confirmation of the reported settlement of the meat problem on the basis ot a short-term Anglo-Australian agreement. Most Australian authorities concur with the wisdom of the reported decision in view of the greater issues ahead; Though the Anglo-Irish agreement was announced simultaneously with Australia’s decision to restrict, tne Australian Press Association learns that in all the Anglo-Australian discussions the possibility of an AngloIrish arrangement had been borne in mind, and the British proposals to the Dominions made provision for increased supplies from Ireland.

While .the Australian meat trade foresees depressing effects on the market through the partial; restoration of' the Free, State's live-stock exports, it as pointed out that the agreement will probably be less immediately deleterious to Australian producers than it looks at first, because there is an acute shortage of store cattle in England owing to beef of a low quality being marketed in order to obtain the subsidy. In the second place, the Free State, is also suffering a shortage of fat catt'e owing to Mr .de Valera’s subsidy. Consequently, the cattle sent to Britain under the new agreement will be mostly stores, which will take a long while to fatten In any case, they will notbe extensively killed when the market is unfavourable. Nevertheless, as it is generally admitted that there is too much beef already in Smithfield, tne effect of the Irish influx presumably will be to make the task of overseas sellers still harder. Mr. Stanley Bruce, Australian High Commissioner, to-night will telephone Mr. J. 11. Thomas, who is on holiday, seeking enlightenment on the AngloIrish agreement He will cable Canberra in respect to it.