USE OF WOOL

Evening Post, Volume CXXVI, Issue 138, 8 December 1938, Page 24

USE OF WOOL

EXPORTS TO GERMANY

CONTRACTION OF MARKET

(Special to the "Evenlnc Post.")

AUCKLAND, December 7.

Leading industrialists in Australia consider the present trade agreement between South Africa and Germany to be of the greatest importance in maintaining Germany as a competitor in the world wool market and in assisting natural wool to maintain a place in the general textile industry, according to Mr. A. R. Phillips, managing director of New Zealand Distributors, Ltd., who returned by the Westralia yesterday after a business visit to Australia. He said that in the period from September, 1937, to August, 1938, the agreement enabled Germany to buy South African wool to the value of £3,250,000 sterling.

"It appears urgently necessary to direct attention to the problem of how further supplies of New Zealand and Australian wool can be made available to Germany," said Mr. Phillips. "It is hoped that this important matter will be taken up by the proper authorities in both countries, German investigations proved that the tendency for market contraction in German wool consumption shows no evidence of slackening and that the import of raw wool into Germany in 1936 was about 100,000,0001b lower than the average for the 1930-33 period."

Against the fall in consumption of natural wool it was important to note the increased production in Germany of artificial fibre, which increased from 16,000 tons in 1935 to 90,000 tons in 1937. It was estimated that this year's total would exceed 145,000 tons. It was felt that while further replacement of wool in certain, directions was, perhaps, inevitable, this tendency might be checked in others, if not permanently averted, provided adequite supplies of wool could be obtained. On the other hand, it appeared certain that once the use of wool was dispensed with —even for the mement —to meet the exigencies of the temporary economic situation the position might be irretrievable, I