647.116/250: Telegram
The Consul General at Sydney (Moffat) to the Secretary of State
[Received November 20—9:20 a.m.]
Your November 18, 6 p.m. Shortly after the licensing system went into effect last May, I discussed not only with our Trade Commissioner but with a number of leading importers of American goods the question of whether special representations by the Consulate General in specific cases involving hardship would be of help. All agreed that such representations would not only be of no avail but would encourage the Government to feel that its policy of discrimination against us was creating a pressure which would force the United States to make unilateral concessions to Australia. Further it seemed that for various reasons to make individual representations would constitute a tacit acceptance of Australia’s trade diversion policy and weaken our position in trying to effect a general recommendation. I have accordingly been careful to limit any recommendations at Canberra to problems involving American trade as a whole and have confined myself to individual cases to conferring with local importers as to ways and means for them to approach the licensing authorities.
In the case of the printing presses referred to the contention of the Government seems to be that an Australian firm endeavored to circumvent the licensing regulations by confronting the Government with a fait accompli. The presses are now in bond while discussions between importer and Government are continuing. I am convinced that any appeal by us would be futile the more so as the argument that the goods were already unladen has been rejected by Canberra in other cases as a reason for granting entrances.