JAPAN'S WOOL

New Zealand Herald, Volume LXXIII, Issue 22431, 29 May 1936, Page 11

JAPAN'S WOOL

TRADE WITH AUSTRALIA RESTRICTED PURCHASES t DECISION DISCUSSED THE I'ROpABLE EFFECTS By Telegraph—Press Association— Copyright (Received May 28. 8.25 p.m.) SYDNEY. May 28 The report that Japan has decided to reduce her annual purchases of Australian wool by 250,000 bales, by buying in South Africa and New Zealand, is regarded as drastic by wool circles in Sydney. However, it is contended that buyers from other countries who operate in South Africa and New Zealand will be compelled to transfer some of their operations to Australia, as supplies from any quarter cannot automatically be increased. It is also argued that if Japan buys more extensively from South Africa and Now Zealand she will find it necessary to change the class of fabrics she chiefly produces. Topmaking wools will be mainly affected hy the Japanese decision to boycott Australian wool. The fact that Japanese buyers do not intend to attend the Melbourne auctions in June is not regarded too seriously by wool-buying brokers, who will discuss the whole question of trade with Japan early next month.

TARIFF CHANGES AMERICAN COMMENT "IMITATING THE NAZIS" (Received May 23. 9.35 p.m.) NEW YORK. May 27 The New York Times, commenting on Australia's tariff changes, says Australia seems to bo imitating the Nazis' policy of trying to secure a balance of trade with each country. That policy, if spread internationally, would be more ruinous to Australia than to most countries. If it thinks its direct trade with the United States is lop-sidedly in our favour it should recall that its direct tra<le with many other countries is just as lop-sidedly in its own favour.