PURCHASE OF WOOL CLIP

New Zealand Herald, Volume LV, Issue 16881, 20 June 1918, Page 4

PURCHASE OF WOOL CLIP

DURATION OF AGREEMENT-

ONE YEAR AFTER THE WAR

NO CHANGE IN PRICE

[BY TELEGRAPH. — PRESS ASSOCIATION.]

WELLINGTON. Wednesday. The Acting-Prime Minister is in receipt of information from the Secretary of State for the Colonies, through the GovernorGenera!, to the effect that the Imperial Government has announced the terms under which the purchase of wool from the Dominion will be continued. It is notified that the purchase will be continued during the currency of the war and thereafter for one full year, commencing on June 30 following the termination of hostilities. The price is the same as has been paid during the past two seasons, and the Imperial Government undertakes to share equally any profits arising from the sales for other than the purposes of the British Government. Payment is to be made by the Imperial Government on the fourteenth day after valuation, and all storage charges after 28 days and shipping expenses are to be borne by the Imperial Government until shipping facilities are provided. The Acting-Prime .Minister states that he is in communication with Mr. Massey in regard to details, but these will not- affect the scheme of purchase materially.

The Imperial Government requisitioned the 1916-17 clip, and agreed to pay the average of the prices secured for wool sold by auction in January, 1914, with the addition of 55 per cent. Speaking in the House of Representatives in July, 1917, the Prime Minister quoted the following paragraph in a communication received from the Imperial Government—"ln considering what should be a fair price for next clip, it is important to bear 10 mind that shipping facilities will become increasingly inadequate to lift the clips, and, in any case, a considerable quantity of wool will almost certainly remain in Australasia until after the war. In view of the increased probability that woo! will not be shipped, the Imperial Government considers that the price of the clip should not exceed the price paid last year, but •is prepared to pay for the whole clip on the level of the 1916-17 prices, undertaking all risks of shipping, and paying for wool as last year, whether ships are available or not, and continuing last year's arrangement, whereby any wool sold for other than military purposes is divided equally between the Imperial Government and the colonial Governments, after administrative and other expenses have been met."