DOMINIONS HIT

Auckland Star, Volume LXXII, Issue 119, 22 May 1941, Page 6

DOMINIONS HIT

COHON SUPPLIES ACTION BY BRITAIN CLOTHING TRADE'S CONCERN New Zealand and Australia have 3een ranked fourth grade for the allocation of cotton exports from Britain, according to air mail advice received in Auckland from leading British export houses. It is indicated that the quotas for these two Dominions will be drastically reduced to 25 to 33 per cent of their purchases during 1940. "This will be the hardest blow we have ever had," said a leading city clothing manufacturer to-day. "Coming on top of the import restrictions in force in New Zealand it will greatly increase the difficulties under which we are already labouring due to the shortage of cotton piece goods. Our reserve stocks are used up, and warehouse supplies are sold out." It was pointecr out that Britain was the only country from which New Zealand could buy the materials required by Dominion clothing factories, owing to the ban on licenses for purchases from the United States and Canada to conserve dollar fund^. In view of the outlook, it was suggested that immediate steps should be taken by those engaged in the clothing trade to formulate plans to meet the emergency. These should aim to reduce the consumption of materials and to safeguard the interests of both the workers and the public. Measures should also be taken to ensure that work was equitably distributed in the factories and spread over as long a period as was possible under conditions of efficient production. The workers were chieflv girls and the number throughout New Zealand would run into thousands. Planning for war conditions in Britain has been largely the responsibility of each industry. "The cotton trade is closely associated with the artificial silk trade principally because many of the cloths exported are woven with mixtures of cotton and artificial silk," states a London exporter now carrving on business in temporary accommodation elsewhere in Britain. How Quota Operates Describing the operation of the S^S l^ 011 co "on exports, he saysThe Government will allot a certain number of bales of cotton for export and this will be apportioned in certain percentages to overseas markets For the purpose of the restrictions, the export markets will be classified according to the Government's estimate of their importance to the war effort, which will be approximately as follows:— wwjh First Grade Markets: The United States of America and Canada. Second grade markets: South Africa Rhodesia, Turkey, Egypt, Belgian Congo, Argentine, British West and East Africa. Third grade markets: The Dutch East Indies. Fourth grade markets: Australia, New Zealand and British West Indies; and the last grade, India and China. All Prices Standardised It is stated that the allocation for J*ffi ade wiu be on a basis of probably 100 per cent of last year's supplies, in view of the paramount need of dollars. All prices are being standardised and controlled. "The grading of the various countries for purposes of exports has been influenced entirely bv economics and finance and not by the magnitude of the war effort of each country concerned, otherwise New Zealand and Australia would be in the first grade," adds the British exporter.