BRITISH WOOLLENS

Evening Star, Issue 25618, 19 October 1945, Page 3

BRITISH WOOLLENS

N.Z. A PROMINENT BUYER

ALLOCATIONS RESTRICT PURCHASES (N.Z.P.A Special Correspondent.! LONDON, October 18. Official figures show that . New Zea-' land is third among the principal importers of British wool cloths, concedimg pride of place only to South Africa and Canada, and. purchasing twice as much as Australia. In the first half of 1945, New Zealand bought nearly T. 500,000 square yards of British wool goods, and would have bought more if a more generous market allocation had been possible British wool textile civilian production, although expanding from the relatively low levels to which it was depressed during the war, is in such world demand that the total output has been carefully apportioned over the home and export requirements.

New Zealand occupies a favoured position, for in addition to her share of the current production of the mills, she benefits by purchases from manufacturers’ stocks. The difference between the market allocation and exports from stock is that the cloth manufacturer can claim raw material replacement in respect of any thing, exported under his market allocation, but receives no replacement of wool in respect of exports from his stock. Nevertheless, many manufacturers hold fair stocks of fabrics, and if they care to make these available for export, New Zealand is one of the few eligible markets. It is believed that New Zealand is benefiting materially from these exports from stocks.

. It is officially stated that the authorities are anxious to discard the rigid system of wool cloth export allocations as soon as possible, and not only give British exporters freedom to choose their markets, but allow entry to the export trade of firms whose prewar operations did' not entitle them to participate in the war-time rationing of export markets. Steps must be taken to ensure that countries which a 1 wavs looked to Britain for wool goods shall be adequately supplied, sud it is proposed that the existing market

allocations to specific countries shall be maintained around the present levels, and that any increased output available for export shall be distributed to traders with liberty to export it to any accessible market—any country with which Britain has payment agreements. This, of course, covers ali Empire markets, and includes some Continental and European countries. It is believed that expansion along these lines may be possible early in 1946. In the meantime it is emphasised that the production drive must precede the export drive, and every effort is being made to send up Britain’s wool consumption.

It is officially stated that the increased demand for men’s suits due to accelerated demobilisation will adversely affect, home market supplies in 1946, but Britain’s domestic problems will not affect lie." export policy, and every effort will be made to increase supplies, of wool cloth to the dominions at the earliest moment.