FOREIGN WOOL SALES

Wairarapa Times-Age, 29 December 1939, Page 3

FOREIGN WOOL SALES

BRITISH COMMITTEE FORMED.

The appointment of Lord Essendon as chairman of a committee responsible for the sale of wool abroad is declared by the Yorkshire Post to be one of the “most interesting trade announcements of the week." Lord Essendon will be responsible, under the Ministry- of Supply, for matters connected with the disposal of wool purchased by, but not actually shipped to Ihe United Kingdom. “Although this country has bought •he Australian and New Zealand wool clips for the period of the war and one season after it by no means follows that the whole of the wool is required here," says the Yorkshire Post. “On the contrary, there is reason. to suppose that after the requirements of Britain and her Allies have been met, there will be remaining margins of supply available for disposal in ether directions. "The purchase of these clips in their entirety gives this country and its war partners first claim on anything they require, but, after that, it may be assumed that there will be supplies for most of the countries which have been accustomed to buy wool in Australia and New Zealand. Moreover, it is to 1 ’ie interest of everyone concerned that —consistent always with our war aims —rhe wool not. actually required shall be allowed to enter world trade. 'lt would not be a good thing for Australia if all other countries normally buying her wool were required to look elsewhere during the war, and providing that precautions are taken against supplies reaching enemy hands, there is good reason why the normal needs of other countries should oe satisfied. subject always to the first claims of -Britain and her Allies. PRICE QUESTION. “To the trade in this country, the chief point of interest is not so much the machinery by which foreign countries may obtain access to Empire wool as the price they will pay for it. Will the authorities release wool for export at prices corresponding to those at which this country has bought the Australian and New Zealand clips, or will they lake advantage of the higher price now ruling in other markets of the world 7 "The same question arises, of course, in connection with exports of wool and - allied goods from this country. .Present prices at which the control will sell to the trade are for home, trade only, and export issue prices are still awaited. On the surface of things, at any rate, there seems no reason why the authorities should not take some benefit from the fact that outer world prices for wool are higher than controlled prices now ruling in this country, and, rightly or wrongly, the expectation of the Bradford trade is that export issue prices for goods from this country are likely to be higher than the level established for home trade requirements. “Similarly, in the case of Empire wools shipped direct from countries of 1 production to foreign countries, it would seem that there are good reasons why selling prices should be in line with open market values. If they were to be lower than free markets, for example, they would obviously attract a disproportionate share of the free demand, and there might be a bigger call than could be supplied. As the clip purchase agreements provide that profits on the sale of wool to other countries shall be shared between the United Kingdofn, Australia, and New Zealand, it seems fairly evident that prices for selling

abroad will take some account for world levels. IMPORTANT CONSIDERATIONS. "Leaving aside the internatiaonal aspect of wool prices, the trade in this country awaits the issue of prices at which goods will be supplied by the control for export purposes. It is clear from what has been already said that important considerations have to be taken into account before export prices can be finally decided, but trade circles in Bradford feel strongly that every effort should be made to provide a basis for the shipping trade at the earliest possible moment. “Industrialists in every trade are urged to maintain exports by every possible means, and not to be content with a home trade turnover which might be somewhat easier to effect at the moment. The wool and. allied trades.are accustomed to export on a substantial scale, but after nearly three months of control a list of export prices is still awaited. Presumably the only materials which can go overseas at the moment are those which lie in quarters where they are not subject to control, and the supply of such materials is limited. “Meanwhile there are overseas customers of this country pressing for goods which they have been accustomed to buy here for many years, and the Bradford trade believes that at least some of these requirements could be satisfied from existing supplies in the country without detriment to the national interest.”