AMERICAN WOOL BILL

Press, Volume LXXXIII, Issue 25247, 28 July 1947, Page 3

AMERICAN WOOL BILL

HOUSE APPROVAL OF MEASURE COMPETITIVE SELLING BY GOVERNMENT (N.Z. Press Association—Copyright) (Rec. 10.30 p m.) WASHINGTON, July 26 The House of Representatives to-day passed on the voices the Wool Bill, continuing the Government’s domestic wool subsidy programme. The measure now goes to President Truman, who has indicated that he will sign it. Compared with the previous programme, the measure contains a new provision empowering the Government to sell domestic wool at prices in competition with comparable grades of imported wool, instead of a 40.4 cents ner lb as formerly. Government sales to American manufacturers, however, are not expected to close the American market, even temporarily, to foreign wool, because (!) the annual consumption —more than 800,000,0001 b the total of the existing domestic stockpile of 460,000,0001 b, added to the 300.000,0001 b produced in the United States each year; (2) the tariff of 34 cents per lb on imports provides roughly one-third of the entire Customs intake of the American Government; and t 3) officials are anxious to avoid any price war against foreign wool, which would likew'ise depress the market for American wool. About the third point, the House agriculture committee's report on the present bill specifically states: "It is not intended that the Government should dump its stocks of wool, or that it should wage a price-cutting war or depress the market unduly. However it is intended to put the Government in a position to compete for the domestic market, and to deprive foreign sellers of the competitive advantage they have had of pricing their wool below the point at which the Government has been permitted to sell.”

The measure, in subsidising American producers and authorising the Government to take the loss on sales to American manufacturers, may increase pressure among economy-mind-ed Republican Congressmen against i ny immediate reduction in the present wool tariff. It is felt that such would particularly be the case if the British Joint Organisation should try to unload more of its Empire stockpile in the United States at any one time than the market could bear. The British stockpile is now believed to annroximate 2.000.000.0001 b. approxi-