WOOL SCHEIE ACCEPTED.

New Zealand Herald, Volume LVII, Issue 17663, 27 December 1920, Page 5

WOOL SCHEIE ACCEPTED.

BACKED BY GOVERNMENT. NEW ZEALAND NOT INCLUDED A SEPARATE PROBLEM. By Telegraph—Press Asecciation—Copjnsat (Received 9.30 p.m.) A. iEd N.Z. LONDON. Dec. 24, The director of Raw Materials, Sii Arthur Goldfinch, replying to a telegrair from the Bradford Chamber of Commerce expressing the opinion that it would b< unwise to hand over Government stockof wool to any syndicate, and requestins that the whole of the woollen and worstee trades be consulted before the Govern ment takes action regarding the Aus tralian proposals, points out that the Aus trali&n Government, in requesting that half the surplus wool and half the cash surplus be handed over to a co-operative association representing the entire sheep farming community of Australia, is ask ing for no more than it i 3 entitled to re ceive. The British Government would not think it proper to offer any observation on the Australian Government's proposed use of these assets. The Australian suggestion that the British Government hand over the British half of the surplus wool to the Australian Association for realisation on behalf oi Britain stands on a different footing, but there are strong reasons why it should be accepted. Enormous difficulty, delay, and unnecessary expense would be insolved in making a physical division ol 1,800,000 bales of wool; also, the Britisa Government desires to disbank th* Wool Department as rapidly as possible. The Australian proposal is very welcome to this department. The terms under which wool was purchased entitle the Australian Government to be consulted in all arrangements for the sale of all this wool. Australia would not agree to the British Government handing over any part of this wool for sale to any agency except an association in which Australia was very largely represented. The Australian proposals contain absolutely nothing affecting the normal course of business of the Australian or British wool markets. The new clip will not be subject to the association, so that the flow of wool to England from Australia and other countries should continue to the full extent of the industry's requirements. Australia asks for no restriction, and no preference of any kind. Therefore, it is impossible to see how British wool-buyers can be placed at any disadvantage compared with their position in normal times. The appointment of thoroughly qualified and responsible men of business as directors of the association, whose nomination will be subject to the British Government's approval, will be a sufficient guarantee that the association's affairs will be conducted in a moderate and reasonable spirit. Any attempt to hold up wool for unnaturally high prices is outside the desires of the association and, in any case, would be defeated by market conditions. The Governments of several other -woolproducing countries are finding themselves forced to take protective measures to safeguard the sheep industry. From this point of view the Australian proposal is so cautious and moderate that the Wool Department would find it difficult to offer any valid criticism, even if it were permissable to do so. Sir Arthur added that New Zealand wool is not at present included in the Australian scheme. After an answer has been given to the Australian proposals, the problem of dealinc with New Zealand ■woo] will be considered. A full meetin" of the British Wool Federation in Bradford received the report of a deputation whicb interviewed Lord I Inverforth, Miri<=ter for Munitions, pnd Sir Arthur Goldfinch. After a full discussion the meeting passed a resolution, with only two dissentients, approving the Australian scheme on the assurance, firstly, that the interests of the textile trades will be represented on the directorate and on the proposed syndicate; secondly, that the distribution of wool through the London sales and usual trade channels will be continued: thirdly, the reserves will be fixed as near as possible on the basis of world values. The federation telegraphed to Lord Inverforth accord in trly. Yorkshire neJwsnapers consider that the Wool Federation's endorsement of the Australian scheme ensures its ratification, but they continue to make unfavourable comments. The Yorkshire Observer savs that the fact that balf the whicb the growers sold'to the Imnerial authorities is still the property of the original owners is probably the most rrotesque fact ever known to commerce. It is the growers' tramp card, which they have played to their own advantage as far as they have been able, but the great problem still remains, namely, bow to get the wool into consumption. Failing success in regard to this problem, the transference, of selling powers from the Mjn;strr( of Munitions to a syndicate will be valueless. The Yorkshire Post sav* that it appears that Lord Inverforth, Sir Arthur Goldfinch, and the officials of the Government Woo! Department have obtained a srreat triumph, but the opposition displaved since the announcement of the scheme has secured important concessions, which in decree safeguard thp interests of wool traders and users.' The Yorkshire Post •understands that the British Government ■will retain a veto over the Realisation Association's policy, and also the right to veto nominations to the board of directors. These concessions make the scheme much more acceptable to wool traders generally, but England oucrht to have five directors and Australia four.