TRADE WITH GERMANY

Hokitika Guardian, 8 April 1921, Page 1

TRADE WITH GERMANY

SYDNIvY, Ward, 30. Much interest lias been roused by the announcement of the Prime Minister that Parliament will be asked, very silently, to say whether or not trade relations are to be resumed with Germany. This is tantamount to saying that the Government is abandoning the policy adopted two years ago that under no conditions would trade relations be resumed with Germany. Mr Hughes made the announcement in a fiery speech in the Melbourne Town Hall. He wrapped it round with his usual expressions of fervent patriotism, and as usual, he was cheered to the echo. Mis reply to those who would have pointed out that the policy was unreasonable and impracticable, amounted to a snarl. , Since then every nation except Aus- | tralia has gradually resumed trade rej lations with our former hated enemy. I It lias been pointed out that this is no indication that we hate the Hun any less, but is simple recognition of Hie fact that the world's economic system is so adjusted that one nation cannot be sent commercially to Coventry by the others, without a general disturbance: and that Germany will never be able to pay an indemnity unless she can trade with the rest of the world. And now Mr Hughes lias surrendered. “Tt is no use our thinking that Australia is the only nation in step, when all the others are united in another step,” in said.

The declaration was forced from tile Prime Minister by a rather remarkable disclosure in regard to wheat. \ustrnlin has had. and still has. an enormous quantity of wheat for sale abroad. A certain price (practically 7/0 per bushel) has been guaranteed the farmers. and the Wheal Board, which handles the Pool, has been forced to seek the best possible price abroad. It was found possible to get prices ranging from 9s to 9s od from Germany and so the Wheat Board sold to Germany. This, however, was kept secret because no private person in this country may trade with Germany. When the truth did come out last week, it came with the statement that wlnat was being sold to the Germans at vm’.v nun’ll less than was being charged the Australians for local consumption—namely, 9s. per bushel. This caused a great sensation—and even now the argument as to whether the sales to I fie Germans were f.o.b. or e.i.f. proceeds merrilv.

The Government is likely to get a castigating for itself (through the Wheat Board) trading with Germany, and refusing to allow the Australian commercial houses to do so.