LONDON TALKS ON WOOL DISPOSAL AND PRICE BEGUN

Greymouth Evening Star, 3 October 1950, Page 5

LONDON TALKS ON WOOL DISPOSAL AND PRICE BEGUN

LONDON, October 2 (Rec. 1.15 p.m.).—Britain, Australia, New Zealand and South Africa may propose a reserve price for wool at the fourth conference of the International Wool Study Group, which began in London today. Australia, New Zealand and South Africa discussed this proposal at a conference at Melbourne last month and the proposal was further examined in London late in September by Ministers and representatives of the Commonwealth wool - producing countries. These unofficial talks in London were attended by representatives of American wool producing interests.

The Commonwealth Ministers and representatives were said to have been opposed to an American suggestion that the open auctions should be replaced by an allocation system. Financial observers in London said that this allocation idea originated from a desire to create a wool stockpile but any attempt to stockpile by open auction, under the present conditions of world shortage might seriously affect wool prices which already are at record levels. These observers said the allocation proposal might be supported by France and some other wool-consum-ing countries but expected that it would be opposed by the wool-pro-ducing Dominions. The conference may seek a formula acceptable to both sets of interests. The United States is understood to be pressing for the exclusion of Russia if a world allocation system is adopted in place of public auctions. The most important item on the agenda is price stabilisation. Mr Harold Wilson, President of the Board of Trade, addressed today’s opening meeting. A plenary session will be held in private tomorrow and the delegates will elect a chairman and vice-chairman.