WOOL FOR BRITAIN

Otago Daily Times, Issue 24410, 23 September 1940, Page 8

WOOL FOR BRITAIN

STORAGE IN AMERICA SIGNIFICANT TREND ECONOMIC INTER-DEPENDENCE (From Our Own Correspondent) SYDNEY, Sept. 18. Officials in Canberra believe that tremendous implications for the British Empire are contained in the announcement from Boston that 250,000,0001 bof Australian and New Zealand wool, valued at about £14,000,000, are to be stored in the United States under United Kingdom title of ownership. The move is interpreted in official circles as indicating the increasing economic inter-dependency of the United States and the British Empire, the strengthening of ties between the two Powers, and growing realisation in the United States that the interests of that country and the Empire can best be safeguarded by closer cooperation. British Stocks Officials say that for Britain to allow this huge amount of wool—representing a quarter of the total Australian annual clip—to be kept in the United States shows not only that Britain's stock must be extremely satisfactory, but also that Britain is in a position to assist the United States' own defence programme. As the United States will pay storage costs and any excess rate, and ordinary commercial supplies will be made through normal channels, it is thought that the wool is being stored as an emergency measure in case there is a sudden expansion in United States defence forces. The normal United States wool clip is slated to be sufficient to supply most of the civilian needs, and its peace-time purchases in the Australian market are far from commensurate with a quarter of the Australian clip. It was stated in Canberra that the wool would be the new season's clip and would be sent direct from Australia to the United States. Freight services across the Pacific are operating freely, and it is believed that there will be no difficulty in arranging adequate space. Arrangements Not Affected The scheme makes no difference to woolgrowers. The wool is the property 0 f Britain, and, like the rest of the clip, will be paid for in the normal manner by the United Kinsf' dom Government. Australian officials hope that this move is the first step towards reaching some understanding with the United States on economic matters An economic link between Australia and the United States, according to Commonwealth economic advisers, might mean the removal of restrictions, at present placed by the Johnston Act on the supply of United States dollars to belligerent countries. With adequate non-sterling resources, Australia then would be able to purchase many additional vital war requirements from the United States.