THE WOOL DEAL.

Taranaki Daily News, 10 May 1922, Page 5

THE WOOL DEAL.

THE IMPERIAL PURCHASE. THE NEGOTIATIONS REVIEWED. WHAT NEW ZEALAND GETS. By Telegraph.—Press Association. . Wellington, Last Night. The Prime Minister handed to the press to-day copies of correspondence respecting the Imperial purchase of the New Zealand wool clips in the seasons 1916-17 to 1919-20. The matters involved have been before the public for some considerable time, and the letters coyer the period from the time the original offer was made to Mr. Massey in London in connection witn the purchase of the whole wool clip. The prices were based on the season 1913-14, plus 45 per cent. The British grower, it was stated, paid only 35 and the French only 25 per cent, for wool. At a meeting of representatives of the wool industry, delegates discussed the position. They said the mean average increase had been 66J per cent., and they submitted alternative proposals, stating that the suggested principle of an addition of 45 per cent, was unfair for some classes of wool. The War Office then offered a 55 per cent, advance on the pre-war prices, and at a second conference this offer was accepted.

In May, 1917, the War Office offered, through the High Commissioner, to purchase the 1917-18 clip, saying that in view of the increased probability that wool will not be shipped, the Imperial Government considers the price of the clip should not exceed the price paid last year, but they were prepared to pay for the whole clip on a level with the 1916-17 prices, undertaking all risks in shipping, and paying for the wool as last year, whether the ships arc available or not, and continuing last year’s arrangement, whereby any profit made from wool sold for other than these purposes should be divided equally between the Imperial Government and the Colonial Governments, after administrative and other expenses were met. Then follows considerable correspondence, cul minating in the offer of the New Zealand supply at 85 per cent, over the’ 1913-14 prices. In 1920, the Governor-General advised that up to March, 1919. New Zealand’s share of profits amounted to £1,619.069, which was offered as an interim dividend, the final dividend being based on the ascertained profits over the whole clip purchased. In November, 1920, New Zealand sought information as to the estimated surplus profits on wool for the period March 31, 1920, and the reply was that there was no reason to believe there would be any profits. The indications were that the losses to be faced would not only wipe out the profits for the last financial year, but of the preceding two years, of which New Zealand’s share had already been uted. Correspondence as to the wool having been bought under separate contracts followed. The High Commissioner, in a cablegram to the Prime Minister, stated that the sum due to New Zealand was £685,0000. leaving the Imerial Government to bear the losses on the last two clips, of about £5,500,000. The final correspondence was that New Zealand had been repaid £1,600,000. In correspondence dated July, 1921, Sir Howard Frank to Mr. Massey, said his Government had carried out to the letter all it agreed to. and New Zealand should consider itself fortunate in having been paid £1,600,000, to which she was not really entitled.