WOOL CLIPS FROM DOMINIONS

Press, Volume LXXV, Issue 22883, 2 December 1939, Page 12

WOOL CLIPS FROM DOMINIONS

Meeting Needs Of Canada and U.S. DEBATE IN HOUSE OP LORDS (UNITED PRESS ASSOCIATION—COPYRIGHT.) (Received December 1, 10 p.m.) LONDON, November 30. Lord Barnby, in the House of Lords, drew attention to the delay in supplying Canada and the United States with merino wool and derivatives not wanted for military purposes. He said that Canada was dissatisfied and the United States surprised at the tardiness, resulting in a disadvantage to Dominion woolgrowers. There was also strangulation for seven weeks in most of the export trade in controlled articles and woollen derivatives. From £50,000,000 to £60,000,000 (sterling) of public money was involved. It was not purely a Pacific Ocean problem, for we delayed receiving much needed dollars. Science had produced a competitor for wool—rayon—and the injudicious handling of wool problems, or over high prices, might easily result in a grave disadvantage to woolgrowers. Canada had comprehensively intimated! its requirements on September 14, and there was still the gravest dissatisfaction. Canadian mills might have to shut down if their requirements were not met. The United States had made urgent representations on September 16, but nq arrangements were yet made for wool. Senators in the United States might be the dominating influence in the future. The whole matter was fraught with dangerous political possibilities. The policy followed could not have been on the advice of wool men. Lord Templemore, on behalf of Lord Chatfield, Minister for the Coordination of Defence, announced that the scale of export prices for the Australian and New Zealand wool clips had been settled. Good progress had been made for the early release and shipment of the wool so far as it was available for the immediate requirements of Canada and the United States. Crossbreds were in short supply, but there were ample merinos for abroad. Australian wool was now coming forward on the United Kingdom account, Lord Templemore said, but with a view to preserving normal world wool trade by normal channels, the price agreed between England and the Dominions had to be translated into a scale for various grades which was impossible before the appraisement of grades in Australia and New Zealand. This had now been settled. Crossbreds were largely used for the fighting forces, and were therefore short for export and civilian trade. Britain had told the United States in October that it was likely to have considerable supplies of finer wools. Canada had already received supplies from the United Kingdom of wools for military production. Supply for civilian needs was now possible. PRESSURE FROM U.S.. INSTRUCTIONS GIVEN TO AMBASSADOR December 1, 11.30 p.m.) WASHINGTON, November 30. The Australian Associated Press learns that so great a pressure has devolved on the Government from leading wool consuming interests, due to the fear of wool “starvation” shortly, that the United States Ambassador in London (Mr Joseph Kennedy) has been instructed to take up the question of the speedy release of portions of the Australian clip for the United States. A strong point made by certain Boston groups is that there is little hope of any Australian wool before March, but Australian interests have insisted that while possibly the peak wool flow is in March, there will be ample shipments earlier to relieve the shortage. Well-informed circles intimate that pressure to secure the immediate release of the Australian clip for the United States will serve little purpose, since any but a carefullyconceived method will serve neither the buyer nor the seller. Moreover it is believed that a British clarifying announcement can be expected shortly. AUSTRALIA’S TRADE WITH CANADA DRASTIC REDUCTION EXPECTED (Received December 1, 11 p.m.) OTTAWA, November 30. The Australian import restrictions are likely drastically to reduce Australian and Canadian trade—possibly by half. It is believed that it will be difficult to restrict Canada’s exports to the full one-sixth contemplated, since several essential commodities are best obtainable in Canada, including lumber, newsprint, and automobile chassis. Officials decline to comment whether the restrictions violate the Australian-Canadian trade pact.