LESS COTTONS LIKELY FROM BRITAIN

Chronicle (Levin), 4 March 1947, Page 7

LESS COTTONS LIKELY FROM BRITAIN

—Press Association

By Telegrapn-

CHRISTCHUECE, March 3. The sponsorship o± cotton textiles from the United Ringdom has been abolished, and .there will • hencef orth be no . f urther country-by-country allocations of these goods by the United Kingdom authorities. This was announced today by the Minister of ln dustries and Commerce (Mr. Sullivan) and conlirms advices which have. been received recently th rough ■ trade ..channels. • - The Minister further -indicated that there would probably be a- substahtial reduction in the quantity of cotton goods imported from the United Kingdom towards the end of this year, but offsetting this there was some prospect of securiug cotton goods from (lernjany and Japan.. - . ■"The United Ifingdom in f uture, 3 1 he said, " will not be able to make aliocations of cotton goods on a countr-y-by-couiltry basis, apart from, certain iimited exceptions. Perhaps the most serious shortage in the field of textile goods. exists in cotton textiles, and up untii the end of 1946, New Zealand liad a iixcd allocation, a part of which wa^s sponsored through my departinent, and part available to New Zealand under a 'free' o'r traders' quota. However, the Uqited Kingdom Uovernment has advised that this system has had to be re vised to bring it rnore into line with the. general production position in tha cotton industry in that country,- and the British G-overnment 's need for incfeased .exports to 'hard currency' markets. The new system, which is operative immediately is intended to give greater freedom to the British cotton industry, witliin the total cxport allocation for trade with Empire territories, Western Helnisphere counries and other 'hard currency' countries. "ln specific terms, as applying to New Zealaud," continued the Minister, • ' this means the abandonmeut of a fixed allocation to us, and the discontinuance of the present system of sponsorship. Domiuion importers and their agents in the United Kingdom wili have to talce their piace with those of other countries, and buy what they can from the exportable surpluses available from Britain. Present indications suggest that supplies to New Zealand from the United Kingdom are likely to be considerably reduced compared with 1946. .On the other hand it would appear, the Minister went on, that other sources of supply might become available although it was probable that types of cloth from these sources would be Iimited in line with the piece goods position. Cotton yams, threads, etc., troin the United ixingdom would be similarly affected. It was iinportaut to uote, however, stated Mr. Sullivan, that a considerable voluuiu of material -was . being currently produceu for New Zealand in the United Kingdom against orders acccpted by exporters during 3 946, and for which these exporters had already obtained autliority to acquire cottou yarn, either by virtue of sponsorship, or altematively, out of their so called traders' ^uqta.. These orders would not be alfected. Orders were, uormally deiivered within about nine uionths after the yarn was released to exporters.— It might thus be Jate this year before any ofi'pcts of the redueec} production situation in tlre United Kingdom would be feit so far as im ports into New Zeaiuud were concemed. "Although the future of our cotton supplies is almost entirely in the hands of buyers in New Zealand and sellers in Eifgland," said the Minister, "the Oovemment itself is foliowing up every possible avenue of approach to enable importers to secure additional supplies. ' '