H.—3ob.

''5. As soon as any parcel or consignment of wool shall have been appraised the New Zealand Government shall notify the United Kingdom Government of the quantity of the wool as so appraised and the United Kingdom Government shall thereupon pay to the New Zealand Government the price payable therefor under this Agreement and thereupon the wool so appraised shall become the property of the United Kingdom Government. " 6. Notwithstanding anything herein contained the United Kingdom Government reserves the right to reconsider the place of appraisal of any slipe wool purchased under this Agreement and in the event of the exercise of such right such consequential amendments shall be made to this Agreement as may be agreed to between the parties hereto. "7. (1) A separate account shall be kept by the United Kingdom Government showing any profits earned or losses incurred upon all sales pursuant to this Agreement of wool not required for use in the United Kingdom (including any such wool which may be scoured or carbonised on behalf of the United Kingdom Government in the Commonwealth of New Zealand) and such profits or losses shall be ascertained upon such basis as may be agreed between the parties hereto. " (2) Before selling or agreeing to sell direct from the Dominion of New Zealand for use outside the United Kingdom any wool purchased under this Agreement the United Kingdom Government shall notify the New Zealand Government of the price at which such wool is intended so to be sold. (3) As soon as practicable after all wool purchased under this Agreement shall have been disposed of by the United Kingdom Government, one half of any balance standing to the credit of such account shall be paid by the United Kingdom to the New Zealand Government. 8. (1) rhe proceeds of sale of any wool sold by the New Zealand Government on behalf of the United Kingdom Government shall be dealt with by the New Zealand Government in accordance with directions from time to time given by the United Kingdom Government. (2) Subject as aforesaid any sum payable by either of the parties hereto to the other of them under this Agreement shall be paid in sterling to the account of the New Zealand Government or the United Kingdom Government (as the case may be) at the Bank of England in the City of London. 9. (1) The New Zealand Government shall from time to time furnish to the United Kingdom Government such statements and accounts as may from time to time be required by the United Kingdom Government for the purposes of this Agreement in relation to all sales and other dealings in wool purchaseable by the United Kingdom Government under this Agreement. ' (2) Any such statement or account shall if so required by the United Kingdom Government be examined and certified as correct by the Controller and Auditor-General of the New Zealand Government. 10. If either of the parties hereto shall in May in any year so require, the price payable for wool purchaseable under this Agreement during the next wool year shall be reconsidered and increased or reduced to such extent or in such manner as may be agreed between the parties hereto to be expedient by reason of any substantial alteration occurring after the date of this Agreement or the date when an adjustment shall last have been made under this clause (whichever may be the later) in economic or other conditions. 11. This Agreement shall be deemed to have come into force on the 2nd day of September 1939 and shall be construed and have effect accordingly and in particular any act done before the execution of this Agreement pursuant to the arrangements to which this Agreement gives effect shall be deemed to have been done under this Agreement; " In witness, &c." Discussions between New Zealand Government and Dominion Wool Interests. On the 14th September, 1939, a conference was called by the Government of representatives of all sections of the wool industry for the purpose of discussing fully all essential aspects which should be taken into consideration in negotiating the sale of New Zealand wool to the Imperial Government. Present on this occasion were — Hon. W. Nash, Minister of Marketing, in the Chair. Hon. W. Lee Martin, Minister of Agriculture. Mr. H. D. A eland, President of the Sheepowners' Federation. Mr. W. W. Mulholland, President, New Zealand Farmers' Union. Mr. T. A. Duncan, Chairman, New Zealand Meat-producers Board. Sir Alexander Roberts, President, Stock and Station Agents. Mr. A. E. Mabin, President of the Woolbrokers' Association. Mr. C. G. Prevost, New Zealand Woolbuyers' Association. Mr. D. Allen, Messrs. Wright, Stephenson, and Co., Ltd. Mr. J. G. Barclay, M.P. for Marsden. Mr. D. 0. Williams, Director, Bank of Now Zealand. Mr. 11. M. Christie, President of the Wool Council. Messrs. Smallwood (State Advances Corporation), Snell (Public Trust Office), and Fawcett (Department of Agriculture). At an early stage in this conference a sub-committee was set up for the purpose of investigating costs of production and of recommending to the Minister of Marketing a possible purchase-price which would cover these costs and maintain the woolgrowiug industry. The same day this committee recommended a minimum price of 12d. per pound New Zealand currency.

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