647.116/320
The British Embassy to the Department of State
The following is the text of a statement made by the Minister of State for Customs in the Commonwealth Parliament on December 7th.
It is the intention of the Government to make a change in the licensing system introduced on May 22nd 1936 and to substitute a system of adequate duties where such action is necessary for the protection of Australian industry. The import quotas at present applying to motor chassis however will be retained, and the motor chassis quota will continue on the present basis which provides for the annual importation of chassis equal to the number imported during the twelve months ending April 30th, 1936. In the case of other goods now subject to restrictions under the licensing system the action necessary to determine the duties adequate to protect industries established under licensing restrictions or industries which have either extended their manufacturing operations or have laid plans for their establishment [Page 152] will be put in hand forthwith. It will not however be possible to determine and apply the duties at once, and the change over from the licensing system to the duties cannot be made until Parliament meets after the recess and in appropriate cases reference will be made to the Tariff Board.
In the meantime the licensing system will be administered on the following basis:
- 1.
- In the case of goods which are not competitive with Australian industry licenses will be granted for their importation irrespective of country of origin;
- 2.
- In the case of goods competitive with Australian industry the licensing restrictions at present in force will operate until duties adequate to the protection of the industries concerned have been determined and applied;
- 3.
- In the case of motor chassis importation will continue on present basis.
The Commonwealth Government has arrived at this decision in the light of its experience over the last twelve months and after carefully considering factors operating for and against retention of licensing system including improvement in trade balance since restrictions were first introduced.