PROBLEMS OF THE WOOL TRADE

Chronicle (Levin), 21 November 1946, Page 7

PROBLEMS OF THE WOOL TRADE

| (Special Correspondent). Beceived Wednesdav, 7 p.m. ! LONDON, Nov. 20. j Yorkshire trade circles are disapj pointed that last week 's inter-Govern- • ment wool talks apparently did not dis- ■ cuss some of the more immediate probi lems of iuternational trade. Tlie first i reaction here is that the conference pre- | sented opportunities of which full adj vantage does not appear to have been ; talcen, that is, if the oilicial statenient j covers the full scope of the discussions. Perhaps Yorkshire expeeted over mueh j but tliere is a delinite feeling that the i conference might make rea] progress toj ward, firstly, closer cooperation between j the principal wool exporting countries; j secondly, planned marketing; thirdly, ! removing some of the barriers outside j the British Kmpire which even yet tend | to impede the free flow of wool among j nations. Nevertheless, it is agreed that ! the conference achieved a useful pur1 pose in certain direetions. Apart from ! the primarv functions of the new iuternational wool study group, the conference rendered valuable service in facilitating permanent contact at Government level between Britain and the wool producing Bominions and other wool producing and eonsuming countries. Such contact. is essential if true

international cooperation in wool matters is to be achieved. Although the ^present contact is mainly concerned j with an excliange of views and informai tion, its existence may prove of growing importance. The conference also enabled an authoritative account to bo given to overseas delegates of the real aims and purposos of the United King-dom-Dominions wool disposal scheme, particularlv of its price stabilisation machinorv. This scheme, it is believed, | is not yet as woll understood as it ! should be in foreign countries and an ■ official explanation would be reassuring. | America particularlv has been nervous lest the existence of the Dominion will I surpluses should threaten either Houth I American supplios or North American i intornal price structures. Tf such misg'ivings have been removed, the confcr- , ence has justified itself on that score : alone. ! .Meanwhile, wool in the open marketR I continuos to sell freelv in all primary ■ markets and Britain. The New Zea- : land season is regarded here as enjoying an auspicious opening and Ihe opin- ; ion is generallv expressed that valuesare holding verv woll in face of the ' generous ofTerings dictated by the price l stabilisation policy of the Joint Organ- ; isation. Po far Ne%v Zealand wool valj uos have been possibly more thoroughly I tested than Australian as laliour ! troubles in the Commonwealth preventI ed full adherence to the origiual selling | programme. This situation may be cor- ! rected this week by the 50,000 bale j Bradford sale confmed to Australian I and South African greasy merino comb- ! ings. More New Zealand wool will bc | oft'ered at the London saies opening i j next week and it will be interesting to j : see how the spot market reacts to the strong New Zealand opening.