A BOYCOTT ENDED

Evening Post, Volume CXXIII, Issue 3, 5 January 1937, Page 6

A BOYCOTT ENDED

According to llie cablegram published today Japan is oncc again an active competitor with the world for wool in the Australian market. Negotiations between the Governments of Japan and Australia have been concluded by which the former will take over a period of 18 months some 800,000 bale? of wool, and the latter will permit the importation of increased quantities of cotton and rayon goods of Japanese manufacture. At the time Japan refused to buy wool in Australia it was second only to the United Kingdom as the largest buyer of wool in Australia. It had bought the year before the sales were boycotted some 785,000 bales of wool in the Commonwealth and bad paid good prices for this material. When the sales were boycotted Japan went to South Africa and South America for wool, and it bought heavily in New Zealand such wools as were suitable for its requirements. But the market was then on the upgrade, and, moreover, the geographical advantage of Japan buying in Australia and New Zealand and loading the wool into Japanese vessels when such were available was manifest. Not only high prices but increased freight rates had to be met by Japanese importers on wool bought in South America and South Africa. , It is then to the manifest advantage of Japan to buy as much wool of the kind it needs in Australia and New Zealand. Of course, the wool growers of Australia are gratified at the termination of the dispute, but the Commonwealth Government had not only the Australian primary producer's interests at home to consider but his interests in that great market of the United Kingdom to which he still has a free entry and to which he sends by far the greater part of his produce. If Great Britain continues to admit freely the primary products of the Dominions it is only natural that it will expect liberal or at least fair treatment from those Dominions for its own products which happen to be manufactures in close competition with those of foreign countries. Recognition of this principle no doubt actuated the Australian Government in taking action which was resented by Japan and resulted in v the boycott of the wool sales to which it now returns.