WOOL IN AMERICA

New Zealand Herald, Volume LXXVII, Issue 23769, 24 September 1940, Page 4

WOOL IN AMERICA

NEW STOKAGE PLAN CLIPS WORTH £14,000,000 NEW ZEALAND AND AUSTRALIAN [from our own correspondent] SYDNEY, Sept. 18 Officials in Canberra believe that tremendous implications for the British Empire are contained in the announcement from Boston that 250,000,0001b. of Australian and New Zealand wool, valued at about £l-1,000,000, are to be stored in the United States under United Kingdom title of ownership. The move is interpreted in official circles as indicating the increasing economic inter_- dependency of the United States and the British Empire, the strengthening of ties between tho two Powers, and growing realisation in the United States that the interests of that country and the Empire can best be safeguarded by closer co-opera-tion. An Emergency Measure Officials say that for Britain to allow this huge amount of wool —representing a quarter of the total Australian annual clip—to be kept in tho United States shows not only that Britain's stock must be extremely satisfactory, but also that Britain is in a position to assist the United States' own defence programme. As the United States will pay storage costs and any excess rate ; and ordinary commercial supplies will be made through normal channels, it is thought that tho wool is being 6tored as an emergency measure in case there is a sudden expansion in tho United States defence forces. The normal United States wool clip is stated to be sufficient to supply most of the civilian needs, and its peacetime purchases in the Australian market are far from commensurato with a quarter of the Australian clip. It was stated in Canberra that the wool would bo the new season's clip and would be sent direct from Australia to the United States. Freight services across the Pacific are operating freely and it is believed that thero will be no difficulty in arranging adequate space. An Economic Link Tho scheme makes no difference to wool-growers. The wool is the property of Britain, and f> like the rest of tho clip, will be paid for in the normal manner by the United Kingdom Government. Australian officials hope that this move is tho first step toward reaching some understanding with the United States on economic matters. An economic link between Australia and tho United States, according to Commonwealth economic advisers, might mean tho removal of restrictions at present placed by the Johnston Act on the supply of United States dollars to belligerent countries. With adequate non-sterling resources Australia then would be able to purchase many additional vital war requirements from the United States.