BRIGHT TRADE OUTLOOK

Taranaki Central Press, Volume IV, Issue 393, 27 March 1937, Page 2

BRIGHT TRADE OUTLOOK

AUSTRALIA’S POSITION

Exports Increase by £12,000,000. Sydney, March 17. The Commonwealth trade statistics for 1936 have just been issued from Canberra, and on the whole they are of an encouraging character. Our overseas trade balance for the past year stands at £24,500,000, which represents an improvement of over £3,000,000. It is true that imports rose sharply to the extent of nearly £10,000,000, largely owing to the modifications of the Federal tariff introduced in spite of strong opposition from our Protectionist party, but fortunately this was more than offset by an increase in the value of our exports, which rose by more than £12,000,000.

This favourable development was, of course, due to an increase in the market returns of our primary products, and particularly in the increased sales of wool. The United States especially became more valuable as a customer, and though the balance of trade between us is still substantially in America’s favour it was reduced by over £5,000,000 — from £7,750,000 to £2,500,000. This expansion Of our trade with America is a happy omen for the future, and our success in holding our own on the world’s wool market, in spite of the defection of Japan, was one of the 'most encouraging features of the past commercial year. It happens most opportunely that at this precise’ juncture the possibilities involved in opening up new profitable markets in other countries have been just brought vividly before our eyes. Recently there arrived in Sydney Mr H. Yuan, the managing director of Oriental Wool Manufacturers, Ltd., of Tientsin. He

has been sent down here by his com-’ pany specially to investigate the conditions of our wool market, and his mission was regarded as so important that he flew from China to Australia, taking less than seven days over a trip that usually occupies three weeks. Mr Yuan so far has been authorised to purchase about 5000 bales of cross-bred wool. Market Possibilities.

It may not be generally known that China has been for some time past the second largest buyer of wool in the British market, and most of this wool came originally from Australia. There seems to be no reason why such purchases'should not be made directly from Australia, and why they should not expand largely in the near future. There .as no doubt that the Chinese are becoming rapidly Westernised like tire Japanese, and there is plenty of evidence to show that the national dress is being steadily replaced by European clothing, in which wool naturally plays an important part. As a consequence, so Mr Yuan tells jus, “woollen mills are springing up all over China, and every one of them is working a 24hour schedule the whole year round; and still the demand is greater than the supply.” This is information on which our politicians as well as our sheep-men would do well to ponder. Though Mr Yuan is employed by a private firm, he is also described as “the unofficial trade envoy of the Chinese Government,” and he is anxious to discuss the possibilities of the wool trade with representatives of the Federal Government.

Mr Yuan’s mission has certainly opened up a wide vista of possibilities for Australia, and it is to be hoped that our people will make the best of them.