I shall be glad if you will kindly convey the following message to
the Secretary of State for Dominion Affairs [1]-begins.
We desire to refer to the discussions which have taken place
between our Governments through Bruce on the subject of the sale
of dried fruit surplus after providing for requirements of our
domestic markets of [sic] Canada and New Zealand and of the
decision of the United Kingdom Government to purchase only 24,500
tons out of the probable surplus of 50,000 tons. Further that this
would be the position throughout the war.
If this attitude be adhered to a very serious condition indeed
will be brought to the industry. Government assistance would
undoubtedly be sought and nothing short of acquisition by the
Government would provide a remedy. Whatever steps be taken, heavy
losses will be sustained as there is no further market to look to
and the fruit would just not be sold at any price.
For many years before the war the United Kingdom Market absorbed
the Australian surplus and an industry largely consisting of
soldier settlers was built up on the assumption that the United
Kingdom Market would be retained. In discussions between United
Kingdom and Australian Ministers and Officials during the
preparatory stages before the outbreak of war it was stated that
the United Kingdom Government would buy amongst other products the
surplus of dried fruits and canned fruits. On seeking to open
negotiations however, the Commonwealth Government was informed for
the first time that undertaking had been entered into by the
United Kingdom Government to purchase Turkish dried fruits as an
economic warfare measure. Whatever be the merits of the Turkish
arrangement which are no doubt material we feel very strongly that
no such arrangements should have been made without consultation
with Australia. The fact stands out clearly that Australia has had
imposed upon her a measure seriously damaging to one of her
industries without her consent, indeed without her knowledge. We
must affirm emphatically that such a step does not fit in with our
conception of the trade relations which should exist between our
two Governments even under war conditions. We wish earnestly to
ask therefore that your Government review the position conveyed to
Bruce with a view to the purchase of our full surplus.
We are also perturbed at the prospect of difficulties arising in
regard to the export of our canned fruits but we do not wish to
make representations to the United Kingdom Government in this
respect until certain issues have been clarified through Bruce.
These instances strengthen our feeling that we should have some
direct representations in the Ministry of Economic Warfare in
which we are at all times willing to play our part but effective
co-operation in which requires advance knowledge and consultation.
Therefore the Commonwealth Government would be glad if facilities
could be afforded for the appointment of an Australian Liaison
Officer of high standing to the staff of the Ministry of Economic
Warfare. [2]
[FA: A3196, 0.1876]