CANBERRA

Press interest Japanese Trade Agreement still lively but
opposition lacks real sting. Under these circumstances suggest
formal hand out not necessary on arrival and it might be
preferable to have informal talk with press men, answer questions,
etc. To this end propose advising Press of your arrival Monday.

Your own statements in Japan over the last few days have been
given a good run and prepared release on day of signature given
widest distribution here.

2. Following points might be worth bearing in mind for press
conference on arrival:-

(a) You are entitled to feel encouraged by the widespread
understanding of the need for the Agreement with Japan and equally
widespread recognition of its value.

(b) Wheat Board mission later this month will capitalise on wheat
clauses of new Agreement.

(c) Agreement is particularly timely in view of Japan's current
deficit on sterling account which would otherwise have invited
emphasis upon our previous discriminatory treatment towards
Japanese goods and would have increased the risk of specially
restrictive measures by Japan of Australia's goods.

(d) Perhaps inadequate appreciation that Section 11 A of
Industries Preservation Act enables Government to move speedily
and without reference to Tariff Board wherever and once it is
satisfied a case has been made to invoke the special action
provisions of the Agreement to protect Australian industry.

(e) There is no question of the Japanese Government's agreement
being required before the Commonwealth Government can take such
special action to safeguard Australian industry. The Agreement
requires consultation but only as far in advance as is
practicable. This point arises because Withall [1] has contended
that Japanese must consent before Australian Government can act.

(f) Some confusion apparently exists about the import licence
position for Japanese goods. This may arise in part from
conflicting reports from Japan about possible increases in
Japanese exports to Australia as a result of the new Agreement.

The fact is that under the new Agreement importers do not get any
additional or new import licences for goods from Japan. They are,
however, free to use their existing quotas or licences for certain
goods to a greater degree than before for imports from Japan.

(g) Curphey [2] has stated all Japanese goods and containers for
them should be marked 'Made in Japan'. If you are questioned on
this, the fact is that these requirements are governed by Customs
Act and many goods already required to be so marked. However,
marking when required applies to like goods from all sources (non-
discrimination) and in some cases imposes genuine burden on
oversea supplier. Any representations that further goods should be
subject to this requirement would be a matter for Minister for
Customs.

(h) Japanese goods get no preference in duties or licensing. They
receive the same import treatment as the goods of all other major
trading countries and British goods retain their full preferences
against foreign countries.

I will meet you at Mascot.