AUSTRALIA AND GERMANY.

Taranaki Daily News, 9 April 1921, Page 8

AUSTRALIA AND GERMANY.

TRADE RELATIONS TO BE RESUMED. Sydney, March 30. Much interest has been aroused bj the announcement of the Prime Minister that Parliament will be asked, very shortly, to .-ay whether or not trade relations are to resume with Germany. This is tantamount to saving that the Goverment 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, bt was chep.<'d to the echo. His-reply to those who Would have pointed out that the policy was unreasonable and impracticable amounted to a snarl. Since then, nation except Australia has gradually resumed trade relations with our former hated enemy. It has been pointed out that this is no indication that we hate the Hun any less, bitt is simply a recognition of the fact that tlie 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 /.ith the rest of the world. And now, Mr. Hughes has surrendered. "It is no use our thinking that Australia is the only nation in step, when all the others are united in another step,” be said.

The declaration was forced from the Prime Minister by a rather remarkable /disclosure ip regard to wheat. Australia has had and still has an enormous quantity of wheat for sale abroad. A certain qjfice—practically 7$ (id per bushel; —hat? been guaranteed the farmers, and the Wheat 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 5d 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 wheat was being sold to the Germans at very much less than was being charged the Australians for local consumption —namely, 9s 6d per 1 bushel. This caused a great sensation —and even now the argument as to whether the sales to the Germans were f.o.b. or c.i.f. proceeds merrily.

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