MOST IMPORTANT.

Auckland Star, Volume LXXII, Issue 90, 17 April 1941, Page 4

MOST IMPORTANT.

WOOL TRADE DEVELOPMENT.

SUBSTITUTES IN EUROPE. The extent to which the use of artificial fibres was being developed in enemy occupied countries, which formerly took substantial quantities of wool from New Zealand and other British Dominions, was emphasised in an interview by Mr. 11. M. Christie, chairman ot the New Zealand Wool Council, in Invercargill. He said that while New Zealand had a very satisfactory contract with the United Kingdom Government for the sale of wool, the Empire's wool position had been complicated by the collapse a year ago of Franco and Belgium.

The two Continental countries formerly absorbed most of the low-grade wool produced in New Zealand, especially seedy wool, for which there was now no demand. There had been recent developments which would probably result in a greatly increased demand for wool by the United States of America, but this was unlikely to apply to the low-grade types. "The latest reports which I have received from the London representative of the International Wool Secretariat indicate that the Germans have carried out alterations in woollen factories In occupied countries, so i that they can be used for processing artificial fibres," Mr. Christie said. "It is stated that a German-Spanish company has been formed for the purpose of manufacturing fibre, mainiy from straw, and it is claimed that during the first year its output will be 7.000.0001b and that it will be doubled within a short time." Hlfh Price of Goods. It should be remembered, said Mr. Christie, that although these Inferior fibres were unlikely to hold the market in normal conditions, the present price of finished woollen articles was very high and left an opening for wood and synthetic fibres. This was caused by the high cost of freight and insurance and some slight additions added by the British Government to deliveries to certain countries. There had been a substantial increase in the use of artificial fibres in the United States, but this might be counteracted to some extent by the release of large quantities of wool to that country.

"In spite of the present marketing difficulties, wool is still by far the safest and best of our productions." Mr. ChrMtie said. "In deciding any plan fore safeguarding the primary Industries, it is clear that we must first do everything possible to retain their structure, and in the present difficult situation wool is becoming more important than ever."