THE WOOL TRADE

Evening Post, Volume CXVIII, Issue 115, 12 November 1934, Page 12

THE WOOL TRADE

VALUE OF GERMAN, J3UYINQ

AUSTRALIAN GROWERS' CASE

The immediate necessity of stimulating trade with foreign countries to.avert serious losses to Australia's wool iudustry was urged upon■'. the Prime Minister (Mr. Lyons) by a deputation from the Australian Wool Growers' CouncilI■and, the Graziers' Federal Council of 'Australia! Mr. Lyons was told that immediate action was "necessary to restore --foreign , buying of -Australian wool. ' , ■ . The question was raised whether the British- preferential tariff was ,too high,' having regard to the ability to produce economically in.Australia, and it was asked that the Tariff Board should make an immediate (inquiry to decide industries in Australia which are not able .to do. so economically and efficiently.' ■'. . ■■ The Prime Minister. promised . sympathetic consideration 'of the matters raised. Theyi.had, he said, already received the consideration of the Government during discussions, of the Customs tariff, but would bo given further sympathetic attention. •' ' ..' '.•' ■■ "■'■':'■■• '■'.' . In putting the case for the wool growers Mr. James Walker pointed*'out that the German Government had placed an embargo on. Australian/ wool so long as it was not possible substantially to increase German- imports into Australia. V Germany's action, it, was believed,.' ,was' brought about by her inability, due to the'decline of her ""export trade,^ to obtain the foreign exchanged necessary to pay for imported wool. With the retire-' ment of German buyers from the market, the loss to Australia was far greater than £4,000,000; or £5,000,000. Difficulties, in maintaining exports for-; manufactured goods-were also, affecting the purchasing power of France^and Belgium on the,wool market. Italian purchases of Australian wool had . been definitely restricted .. by; half,;.but Italy's buying up..to the. present showed, a still greater . • re/luctiqn;. Japan,, which also depended on retaining and ' expanding its export '.marketj was. showing signs -of becoming; restive. The position became very-serious when it was realised that the loss of .'foreign competition .inl'the wool-market might, in some directions at any rate, become permanent. The • manufacture of wool substitutes might be expected to effect a. permanent reduction of the demand for Australian, wool.. . ■-•-••. ..■•■:' "•-'.: TARIFF INVESTIGATION, ■ If it was agreed, said Mr. Walker, that in the interests of Aiistralia'fbreign buyers must bo kept in the wool market, the task; to be faced. was that of- increasing Australia's importations of foreign goods. In some items in the Australian tariff schedule, he contended, the margin "between; the British' preferential . tariff and the-generalr'.tariff was greater than that Required,by the terms of ; .the . Ottawa Agreement.' Instances! were,glass' bottles, flasks,"jars, and' decanters,, wire netting,, nricl carbon tetrachloride. In 1926-27 Australia imported £35,000 worth of;, German wiro.net'ting of a highly satisfactory quality, but now there were no importations of that, commodity: It would be desirable for 'the j Government to investigatev. the whole -tariff schedule to ascertain what op: portiinities there were of .reducing ,the margin between the- British .preferential tariff and the general tariff without contravening the Ottawa Agreement. Two methods, said Mr. Walker, were still open to-Australia of gr-anting immediate.'advantages to certain foreign-customer countries without, infringing the Ottawa Treaty— by granting to such countries, the same primage concessions on specific articles as. were given to Britain,, and, further, by. adopting to a modified extent the1 recommendations of the .Tariff Board to apply the exchange adjustment legislation (at present confined to- Britain) to. certain foreign, goods; under.' special..trade agree-, ipe'nts...■■'■'..; ■: - ■■'- ■ .... -■■-.- .. ' "COMPENSATION" TRADE: v . The. urgency of the: representations vras; emphasised by: Mr. Walker. . Australia'a wool market must be saved before the manufacture of artificial wool was widely established on the Continent,'. and regard must "be paid ..to the possibility of. the manufacture 6f '.artificial wools. ..turning, to crossbred wools, which' foreign- countries might purchase from' South America, to., satisfy; their ' requirements of the staple.' The : Government -'should consider.,■■the placing of Government orders', in foreign countries so that: the. proceeds could be U6ed directly for the purchase by such countries "of Australian wool/-.Such ? compensation transactions" had .been enterejl ■into by Germany with Bulgaria; Argentina, Ireland, arid" Brazil (also.: it was understood, with .Uruguay. 'antVChile),-' partly between Government and ' Government, and partly' between private firms, while clearing "houses had been established to facilitate their carrying out.: ... '". As far'1 as -Australia, "was -concerned, the granting of credits might be necessary to enable - immediate-payment of wool growers, but such. an arrangement would beppssibleonly if repayment was assured beforehand' by - the conclusion of contracts for the delivery of: foreign manufactured goods. ':: '■"■"■'- "."■ . "■■ , . ■'" 1 The wool industry, concluded. Mr .-...Walker,' had'earned on since'its inception and through difficult times without seeking protection. It1 now sought conditions that would-: euable -the. wool- growers .to continue' to!sell on "the;world's,markets. Belgium, France, Italy, awl Japan, it was understood, had made representations, .setting' out .certain goods. which they were anxious- tb' export to Australia," and the deputationurged.ithe Government to enter, into reciprocal trade agreements-with such countries 'and:, by • such-" means • to"' secure and develop markets for. Australia's, prim-, ary■■ products.-.■-';!■ '~,: >~ V '•■•■