WOOL REALISATION.

Taranaki Daily News, 12 February 1921, Page 9

WOOL REALISATION.

AOCmiULATED STOCKS. DOMINION AND IMPERIAL AUTHORITIES. N.Z. REPRESENTATION. The Prime Misister (the Rt. Hon. W. F. Massey) has made the following statement In connection with the handling and disposal of New Zealand wool: It is as well to make perfectly clear what the position is regarding the arrangements for the handling and realisation of the Imperial Government’s accumulated stocks of New Zealand wool. When the British-Australian Wool Realisation Association was initiated it was intended that it should deal only with accumulated stocks of Australian wool and its constitution arrangements were based on this understanding. Then the question of this ; association also handling the Imperial i Gh’-nrnment’s New Zealand wool arose, a 'i<t in considering this, one great point was whether, in view of all the circumstances, such an arrangement would offer any advantage over the continuance of ’ control and of realisation by Ministry of Munitions,' which, by i it's efforts to uphold values of New • Zealand wools, had shown a marked deI sire to assist New Zealand woolgrowers ‘in the sale of their present clip. Such I discussion had occurred up to this time had arisen solely as a result of the general interest taken- by woolgrowers and merchants in the question, and the Government naturally kept a watch on the posit: n in the interests of all concerned, especially the woolgrowers, being fully determined to do all that might be possible to prevent, an undue and sudden fall’•of values with its attendant serious risks, and cables were sent to the Imperial authorities emphasising the necessity for strong holding of stocks. A FURTHER DEVELOPMENT. At this juncture a further development occurred in the shape ot an intimation from lmperial Government that in the event of the proposed British-Australian Association being established it considered that it would be proper to hand over to that association the safe of the New Zealand wool, uifder sufficient safeguards, so that the sale should be conducted to the best advantage and to the entire satisfaction' of'the Imperial Government. We were requested to treat the intimation at the'time as being confidential, but as the position has now developed the for continuing to do so does not- exist. The New Zealand Government on receipt of this intimation at once took up the matter with full regard to the necessity for safeguarding in every respect the interests of woolgrowers, in the sale of their present and currest clips. The previous line of action adopted by the Imperial authorities in holding up values, and the general knowledge of their desire to do the right thing by New Zealand woolgrowers, made it quite reasonable to assume that the safeguards referred to would also include reasonable consideration of the interests of New Zealand, but at the same time it was felt that in order to ensure a sufficient degree of security for us New Zeaalnd should have a direct say in the management of the Association’s operations, at any rate as far as New Zealand produced wool was concerned. Negotiations based on this have been in progress since. It was suggested that an advisory committee should be established in London to act in conjunction with the association to conserve New Zealand interests, including those of growers and trade in the Dominion. INADEQUATE SAFEGUARD. It was felt that such a committee being merely advisory and having no directing power would not, in view of all the. circumstances, constitute a sufficiently adequate safeguard, and the Imperial authorities were notified to this effect, and especially that it was considered jMew Zealand should have adequate representation on the actual management of the association. The matter was then discussed between th£ Imperial Government Department and the High Commissioner, and again the advisory committee was suggested, with the proviso that if the committee weye not too numerous its members would be invited to attend board meetings to express their views. This, however. -was still considered unsatisfactory, and a further cable was sent to the High Commissioner expressing the opinion that having regard to the interest of New Zealand in the accumulated stocks and the vital necessity for protecting the interests of producers 'in the sale of current and following clips by the judicious handling cf the rctimttlated stocks New Zealand should have di-’eet representation on itself. DIRECT REPRESENTATION GRANTED. A reply to this has come to hand today, which indicates that the strong representations made by the New Zealand Government have had a good effect and it is now proposed that a New Zealand committee of three shall be established in London, one to act as chairman, and the chairman to have a seat on the board e of directors of the association. Unfortunately, owing apparently to some error in transit, this communication is not clear on one point, namely, the extent of the powers which would be possessed by this committee, and its chairman, and an urgent cablp has been sent for the purpose of getting this cleared up. A reply should be available wjthin a day cr two. # AN ADVISORY COMMITTEE. In addition to this London committee, an advisory committee in New Zealand is proposed which will keep in close touch with the London committee, particularly in regard to all points connected with realisations of accumulated wool stocks, seeing that this has a most .important bearing upon sales of the px-esent and succeeding clips. This is the position as it stands today (concluded Mr. Massey), and it is anticipated that a definite arrangement may be established with the Imperial Government very promptly. The representation offered to New Zealand on the Board of Directors is not by any .means as large as could be desired in view of the fact that practically all the interests concerned, including those of manufacturers, are already repreEented on the directorate, and this is being Mimted to the Imperial authol'ite,