DOMINION’S WOOL TRADE WITH JAPAN

Gisborne Herald, Volume LXXIV, Issue 22313, 24 April 1947, Page 4

DOMINION’S WOOL TRADE WITH JAPAN

SPOKESMEN for the New Zealand wool industry have corroborK ated the New York cablegram announcing the Dominion’s willingness to trade with Japan, in contradistinction to the attitude adopted by Australia. The official Wellington message says that an early resumption on a limited scale of the wool trade between New Zealand and Japan is viewed by those in the industry as being likely. It is understood that the quantity mentioned by the Americans, 200,000 bales, will be available from the Woo.l Disposal Commission in the type of product formerly supplied to the Japanese. All that remains to be done is the settlement of details of a political nature. For reasons of sentiment there is something to be said for the Australian contention that a ready market for the Commonwealth’s wool is to be found elsewhere among friendlier countries. From the economic viewpoint, however, and under the dictates of. the. postwar reconstruction programme the New Zealand policy is the sounder and more in line with the system followed by Great Britain and the United States in the handling of other raw material. After all, wool is not scrap iron; it cannot be “fired back” in any manner which would prove harmful. There may, indeed, be considerable benefits to be gained from contributing towards maximum activity in the textile trade. .By assisting the large world stocks of raw wool to pass rapidly into consumption the Dominion will lie doing its share towards the provision of an insurance against a future slump and will be helping to re-establish wool in the consumer markets. Particularly does this apply to Japan, which has been accustomed to rely largely, on crossbred wools of which there are huge stocks on hand. In view of the concentration of the Western demand upon the finer clips, the Japanese market would seem to offer a remarkably useful opportunity of clearing the temporarily less favoured qualities.