THE FUTURE OF WOOL

New Zealand Herald, Volume 80, Issue 24537, 20 March 1943, Page 6

THE FUTURE OF WOOL

New Zealand is not associated with Australia in asking that Britain's policy of purchasing their entire wool clips should continue up to a maximum of seven years after the war, but the chairman of the New Zealand Wool Council regards the step as inevitable. For the producer, in his view, this would mean stabilisation in the uncertain period of reconstruction, but he puts even more emphasis on the other side of the question, that of assuring an essential raw material to countries devastated and impoverished by war. The existing purchase scheme covers a large proportion of the wool normally available for the world's markets. There are ordinarily five countries exporting in significant quantity—Australia, New Zealand, South Africa, Argentina and Uruguay. Of their total production, the three Empire countries are responsible for approximately 75 per cent, leaving 25 per cent as the quota of Argentina and Uruguay. Britain, by continuing to buy the whole of the 75 per cent, would dominate the world market. Tn at least one respect the control would be more nearly complete than the crude figures• indicate, for Australia is practically the only significant exporter of the fine wools on which a large section of the manufac-

jturing industry depends. The chairI man of the council, Mr. Christie, evidently realises what this means, for he suggests that a council or committee, with the Dominions and possibly the United States represented, might be required to supervise the position. An interesting question is how far this system would agree with the principles of the Atlantic Charter. That document speaks of "access, on equal terms, to the raw materials of the world" for all nations, victor or vanquished. Some of them might argue that to have the British Empire, even in association with the United States, dominating the supply of so important a raw material as wool was not consistent with the spirit or the letter of the charter. It is a point to remember in considering economic plans for the future.