VAST WOOL SURPLUS

Grey River Argus, 15 February 1946, Page 5

VAST WOOL SURPLUS

2,000 Million Lbs. PLANS TO KEEP PRICES UP. (Rec. 6.30). LONDON, February 13. Doctor Edwin H. Booth. Chairman of the International Wool Secretariat, returned to London yesterday after a month’s visit to America. He said the chief problem there was to convince the local wool producers that the Wool Secretariat’s aim was stability of a world market, not the cutting of their prices and the ruining of their industry. Mr Booth said his visit enabled the completion of arrangements for representation of the Secretariat in the United States. He anounced the appointment of an American, Mr Morton Saveli, as Managing Director in New York. Dr. Booth explained the importance of the American market for wool producers. He said the pre-war consumption of wool pothead there was only two decimal sixty-five pounds, compared with live decimal three pounds in Britain. An educational process carried out by Service authorities during the war was one of the factors leading to an increased demand in America, but the local producers could not compete m prices with the other countries, and they were consequently considering various methods of protection. The American growers were able to provide only one-third even of the preRent requirements. They were considering an import tariff, which would be operated by the State Department; oi’ a subsidy system which would be opposed by the U.S. Department of Agriculture; or an import quota system. which would leave consumers inadequately supplied. Dr. Booth said he was at first received in a restrained atmosphere, but he left with an impression that America regarded the Wool Secretariat as a friend which would act fully in the interests of American, as well as Dominion wool growers. Mr Saveli would work in accord with the American Wool Council, and would maintain contracts initiated by Dr. Booth .with American politicians and growers, who were assured that co-ordination was necessary to avoid chaos and disaster, which might have resulted if the present two thousand million pounds of wool were dumped on the world market.