Trade Agreement

Between NG and Aust.

Two-Way Preference Would be of Little Benefit to NG

IT is believed, in some quarters, that the New Guinea Administration will soon approach the Federal Government and ask that New Guinea products be given preferential treatment in Australia.

But this preference will be a two-bladed weapon as part of the “mutually bene ficial trade agreement,” Papua-New Guinea will be committed to purchase all her manufactured goods from the Com monwealth. And whether this would work out to the advantage of the Tern torian producer, in the long run, is open to doubt. , n , Territorians will remember the good old days” when it was possible to purchase American goods including motor cars and clothing for about 30 per cent, under the ruling Australian price Australian manufacturing methods and her much-publicised conditions of labour, are such that cheap manufactured goods are impossible. In this connection the following mav be of interest: Recently a man in Svdney who wished to buy a small shifting spanner was shown one at 15/-. “It’s English.” he was told.

“It seems a lot for a small thing like that,” he said, “haven’t you got something made locally, and cheaper?” „ “I have got one made in Australia, said the salesman. “It’s a fair imitation of the English job and it costs exactly 25 - 1 ”

Notwithstanding what arrangements are contemplated between the Papua-New Guinea Administration and the Australian government with regard to tarnfs it should be remembered that New Guinea, at least, will be a United Nations trustee ship territory and it is unlikely that UNO will permit of its becoming: such, a close preserve of the Commonwealth that it win be “committed to purchasing all its manu factured goods from Australia.”