Fears persist over deal with China

Press, 30 April 1981, Page 2

Fears persist over deal with China

It looked as though the twain might never meet when the debate between representatives of the international wool textile industry and the New Zealand Wool Board continued yesterday over an arrangement under which a Chinese cotton mill will buy wool from New Zealand, and the board will help the purchase of machinery for a woollen mill. The issue surfaced again at a meeting of the wool committee of the International Wool Textile Organisation, when the president of the organisation, Mr S.. .S. Nevile, reported that he had talks with the chairman of the Wool Board, Mr J. D. Mcllraith. The secretary-gen-eral, Mr W. H. Lakin, read a statement to the meeting aimed at clarifying some aspects of the deal. It was emphasised that wool going to the mill would be sold through normal trade channels, with the trade

being able to sell direct to the mill. Finance was to be provided by the board to assist “in a minor way” in the setting up and buying of machinery to process the wool. The conditions were confidential, but interest rates were stated to be in line with current rates. But some members of the committee remained unhappy about the arrangements. While there was nothing against wool being sold to China, it was submitted that no assistance should be given that was not also available to traditional users of wool. Mr Mcllraith said that the technical service the board would supply to the Chinese was available to the industry in countries such as France and Belgium through the International Wool Secretariat. Responding to a suggestion that the Chinese mill was in

a favoured position in being the recipient of financial help from the board, and that others might also like to enjoy this, Mr Mcllraith said that if French and Belgian spinners were in financial straits the board would be prepared to obtain some financial assistance for them from the normal banking institutions.

When Mr Mcllraith said only 10 per cent of the products made from the wool would be exported, and that this seemed to be minor competition for European manufacturers, questions were raised about the accuracy of an article in the “Peoples Daily,” in Peking, from which he had quoted the previous day. The article suggested that certain products were scarce on the international market, but one of the speakers yesterday asked whether any product made from wool were in short supply.