WOOL DISPOSAL.

Taranaki Daily News, 28 December 1920, Page 5

WOOL DISPOSAL.

THE AUSTRALIAN SCHEME, BRITISH OPINION FAVORABLE.

SEW ZEALAND NOT INCLUDED.

fir Tefcpsph.—Pies* Asia.—Copyright.

Received Dec. 26, 5.S p.m.

London, Dec. 24.

Replying to a telegram from the Bradford Chamber of Commerce expressing the qpinion that it would be unwise to hand over Government stocks of wool to any syndicate, and requesting that the whole woollen and worsted trades be consulted before the Government takes action regarding the Australian proposals, Sir Arthur Goldfinch (Director of Raw Materials) point* out that the Australian Government, in requesting that half the surplus wool and half the cash surplus be handed over to a co-operative association representing the entire sheep farming community of Australia, are asking no more than they are entitled to receive, and the British Government would not think it proper to offer any observation on the Australian Government's proposed use of these assets. Sir Arthur Goldfinch adds that the Australian suggestion that the British Government should hand over the British half of the surplus wool to the Australian association for realization on behalf of Britain stands on a different footing, but there are strong reasons why it should be' accepted. Enormous difficulty, delay, and unnecessary expense would be involved in making a physical division of 1.800,000 bales of wool, and, also, the British Oovemmsnt desires to disband the Wool Department as rapidly as possible. The Australian proposal is very welcome to this department. The terms under which tk wool was purchased entitle the Australian Government to be consulted in all arrangements for the sale of all this wool, and Australia would not agree to the British Government handing over any part of this wool for sale to any agency except an association on which Australia was very largely represented.

. The Australian proposals contain nothing affecting the normal course of business in the Australian or British wool markets. The new clip will not be Biibject to the association, so the flow of wool from. Australia and other countries should continue to the full extent of the industry's requirements. Australia asks for no restriction'and no preference of any kind, and therefore it is impossible to ue how British woo! buy,era would be placed at any disadvantage compared with their portion in normal times. The appointment of thoroughly qualified and responsible men of business at directors of the association, whose nomination is subject to the British Government's approval, would be sufficient guarantee that the Association's affairs will be conducted in a moderate and reasonable spirit. _ Any attempt to hold up wool for unnaturally high prices was outside the desires of the association, and would, in any ease, be ruled by market conditions. The Governments of several other wool producing countries were finding themselves forced to take protective measures to safeguard the sheep industry, and from this point of view the Australian proposal was so cautious and moderate that the Wool Department would find it difficult to offer any valid criticism, even if H -was permissible to do so.

Sew Zealand wool is not at present inclm}«a* in the Australian scheme. After an answer is given to the Australian proposals the problem of foaling with New Zealand wool will be considered.—Aus.NX Cable Assn. Heeeired Dec. 24, 7.15 p.m. London, Dec. 23. A full meeting of the British Wool Federation at Bra4ford receded the depntation'a report «i the interview with Lord Inverforth (Minuter of Munitions) and Sir Arthur Goldfinch (Director of Raw Materials) relative to the Australian realisation scheme.

After a full discussion, the meeting tients, approving of the Australian realnatud a resolution, with anly two dissenisation gcheroe on the assurance: (1) That the interests of the textile trades will be represented on tha directorate and on the- proposed syndicate; (2) that the distribution of wool through the London sales and the usual trade channels will be continued; (3) that the reserves will be fixed as near as poasible on a basis of world value*.

The Federation telegraphed Lord InVmorth Mcordingly.-*-Aua..N.Z. Cable Amb.

COMMENT IN YORKSHIRE. 60ifE UNFAVORABLE CRITICISM. Received Dec. 23, 5.5 p.m. London, Dec. 25. The Yorkshire newspapers consider the Wool Federation's endorsement of the Australian realisation scheme ensures its rat ideation, but continue their unfavorable comments.

The Observer says that half the wool which the growers sold to the Imperial authorities is still the property of its original owners, whioh is probably the most grotesque fact ever known in commerce. It is the growers' trump card, which the growers played to their own advantage as far as they were able, but the great problem still remains, namely, how to get the wool into consumption. Failing success in this direction, the transference of selling powers from the Ministry of Munitions to the syndicate will be valueless,

The Yorkshire Post says it appears Lord Invetforth <wd Sir Arthur Goldfinch obtained a great triumph, but the opposition displayed since the announcement of the scheme has secured important concessions, which in some degree safeguard the interests of wool traders and users. The Post understands the Government will retain the right of veto over the Realisation Association's policy, and also the right of veto over nominations to the boird of directors. These concessions m/\it the scheme much more acceptable to English •wool traders generally, but England ought to have five directors and Australia Iw,—Ans,.N.Z. Cable Assn.

WOOL FOR POLAND. AUSTRALIAN AND NEW ZEALAND. . Reoeived Dec. 24, 8,45 p,m. London, Dec. 23. Xhe British Government has contracted with Poland to sell 35,000 bales of Australian and New Zealand wool for £ll,500,000. The fransaetion will be carried out ii( connection with British relief oredjta, Briton receiving as security retrain Polish bonds. The deliveries of woo! conusance iaftpdiat»l/ (r> Au»..N.Z. Cable j*«an. ■ „ - -•- -■.■ ««».■