Woolbuyers complain

Press, Volume CXV, Issue 33777, 25 February 1975, Page 7

Woolbuyers complain

7he Moolbuyers’ Association has complained to the Wool Marketing < orporation about a statement made in € hina by the Minister of Agriculture (Mr Moyle) urging the Chinese to buy wool through the corporation rather than through private buyers at auction. i he executive manager of, the association (Mr W. E. Carter) said the corporation had also been reminded of the International Woo] Textile Corporation’s concern when the Australian Wool: Corporation started negotiations with China. Mr Carter said that there v. ere at least seven organisations in New Zealand thatl traded with China, directly or

through international principals, in New Zealand wopl. These exporters had strong contacts with the Chinese. Representatives of com-i panies who trade with China in wool were not prepared • to comment on Mr Moyle’s! remarks. Some have been trading with China for a num-! ber of years and have had! very satisfactory relation-I ships with the Chinese. It! has been noted that the Chinese have tended to spread their business among a num-: ber of organisations rather j than favour one in particular.j DOUBTS Although Mr Moyle has! said that the Chinese told! him that they would respect! the New Zealand Government’s wish that they deal 1

with the Wool Marketing, Corporation, there is some' doubt whether the Chinese will indeed do this. There is also some doubt in wool trade circles whether Mr. Moyle has been speaking: with the support of the cor-j

iPoration or even his Government. : According to one source, if the corporation was to sell a single pound of wool for ex.port it could mean that a lot lot companies now’ in the New (Zealand trade would start to .have second thoughts on stayI tng in the trade. This was l because it would make business very difficult in. the future for buyers who were selling wool for forward delivery. If the corporation had first (access to the clip, the traditional exporter would not be [sure of their supplies. If one ior two companies were to pull out of the New Zealand • trade it could throw the IwhoJe industry into chaos. Mr Carter said that a great jdeal had been made of the relatively large buying of China last season and its apparent absence from the market this season. ! Last season’s purchases, he (said, followed New Zealand’s | recognition of China and also the visit of a trade mission,

and might have been heavier Than they would otherwise have been. RECESSION Also having a bearing on China’s absence from the market this season was the fact that China, like every other exporter of textiles, had been hit by the recession. The association and the trade are awaiting more information from Mr Moyle and the corporation.