May Suffer

Import Restrictions Off Australia's Market In N. Guinea May Suffer

The action of the Australian

Government in removing import

restrictions from Papua and New

Guinea, and at the same tinn

reducing import duties on a num

ber of lines from September 1

has caused some stir among mer

chants operating in that Terri

tory.

r[E Territory annually imports goods worth about £2O millions Of that, about £l3 millions ha been from Australia, £ll million from Britain, about £2 million from the United States, about £h million from Hongkong, about £] million from Japan, and nearly £1 millior from Indonesia.

It now is expected that Australian manufacturers will meet sharpe competition from the manufacturers of other countries —especially Asian countries.

For example, in an open marker Japan sells motor tyres for £2 per tyre less than can Australian manu facturers.

That will apply now to many manufactured articles in common use.

This will direct more attention to the high shipping freight rates between Australia and Papua-New Guinea, The rates from Australia to Fiji, for example, are about 60 per cent. less. This places a severe handicap on the sale of Australian goods in New Guinea.

Some commentators say that it is only fair that there should be open competition in the New Guinea market between manufacturers from all countries, so that thei New Guinea residents may get full benefit therefrom.

But others argue that, as the Aus tralian taxpayer is asked to pay at least £l3 million per annum as a free gift or subsidy to the Territory of P-NG, the Australian merchants and manufacturers—who represent a large section of the taxpayers— should be given corresponding pro tection in the Territory.

One fundamental trade principle in the old Mandated Territory days was that all countries should have equal opportunities of trade.

Although Papua now has Customs union with NG, this is probably the basis of the fact that P-NG has no “preferential” tariff for imports from British countries.

The matter probably will receive some attention in the Common wealth Parliament.