JAPANESE REQUIREMENTS

Otago Daily Times, Issue 23953, 31 October 1939, Page 10

JAPANESE REQUIREMENTS

AUSTRALIAN WOOL AND WHEAT £6,300,000 PURCHASE INVOLVED (From Our Own Correspondent) SYDNEY, Oct. 19. Japan is negotiating for the purchase of Australian wool and wheat to an amount of about £6,300,000, based on an estimate of 300,000 bales of wool and 8,000,000 bushels of wheat. The Consul-general for Japan, Mr M. Akiyama, told the Minister for Commerce, Senator McLeay, at a conference, that Japan wanted to buy 300,000 bales of wool from Australia this year. Japan’s purchase of wool from Australia last year amounted to about 242 000 belles Although Great Britain has acquired the whole of the Australian wool clip, provision exists in the contract for sale to neutral countries after the requirements of Britain and her allies have been satisfied. The price at which sales will be made to neutrals is not fixed. Australia merely acts as the agent for Britain, and any addition that is obtained above the fixed price will be shared on a 50-50 basis with the grower. Britain’s price for Australian wool works out at an average of £l7 a bale, so. without allowing for any profit, the amount involved for Japan’s need would be £5,100,000. Japan is negotiating on a basis of part cash and part terms. Wheat purchases which Japan wishes to make will have a substantial effect on arrangements for marketing the new Reason’s crop. Japan’s offer is stated to be 3s a bushel at Australian ports for 8,000,000 bushels, involving £1,200,000.