611.4731/455: Telegram
The Minister in Australia (Johnson) to the Secretary of State
[Received February 16—9:45 a.m.]
34. My 33, February 16, 5 p.m. Following is text of statement:
“For some years past the United States of America has been according Australia most-favored-foreign-nation treatment on Australian goods imported into America. Australia has not up to the present time reciprocated.
Whilst Australia had only a two column tariff and the general tariff applied to goods from all foreign countries it might be fairly claimed by Australia that all foreign countries were receiving most-favored-foreign-nation treatment. But upon the reinstitutions of a three column tariff in the Australian tariff certain intermediate tariff rates were applied to goods from certain foreign countries, including countries which are now principal European enemies, whilst goods from America remained on the general tariff which is higher than the intermediate tariff. Under present circumstances trading with enemy countries or enemy occupied countries is prohibited.
[Page 116]After the Attorney General and Minister for External Affairs, Dr. H. V. Evatt, KC, MP, returned from his mission abroad last year he represented to the Prime Minister and the Minister of Customs that, having regard to the great material assistance received by Australia from United States of America during a most critical period in our history, it would be right for the Commonwealth to take the initiative so as to remove the existing anomaly. Therefore, without any formal request from the United States of America the Commonwealth Government has decided that the time has now arrived to remove the anomaly. Most-favored-foreign-nation treatment has been accorded to most foreign countries including our European enemies and enemy occupied countries and it is wrong that our principal [ally?] should remain on what might fairly be termed the punitive tariff, i.e. the general tariff. The Government has therefore decided to issue proclamations which in effect accord to the United States of America most-favored-foreign-nation treatment. These proclamations will be issued forthwith and thereby place goods coming from our ally United States of America on the most-favored-tariff accorded to foreign goods.”