WOOL CONTRACT

Otago Daily Times, Issue 25427, 7 January 1944, Page 1

WOOL CONTRACT

QUESTION OF EXTENSION Particular interest attaches to recent action taken by the British wool control. When the scheme for the concentration of mill activity in Great Britain into fewer establishments was started the proprietors were asked .to agree to the arrangement for the duration of the war with Ger.manv and for 12 months thereafter. Japan was ‘not then at war. The extension of hostilities to the Pacific and the indications of war in that sphere lasting longer than the European conflict have prompted the British Government 'to make arrangements for the scheme to operate for 12 months after the Japanese war ends, state Messrs Winchcombe, Carson. Ltd., Sydney. In the United Kingdom the question has been raised whether one year will be sufficient to get the whole of the mills back to normal working. Buildings have been occupied by other tenants who must vacate them, and in many cases mill plant and machinery have been completely removed. The British Government action raises the point of the duration of the wool contract with Australia and other dominions which was signed for the duration of the war and one clip thereafter. Germany was then the only enemy. Japan was not fighting. But if the British mills are to be regulated till a year after the Pacific war finishes, the sale of the Empire’s wool should be worthy of the same terms. Continued concentration of milj work in the United Kingdom would have a restricting effect on competition for the sheep's staple if open market sellipg were resumed. Apart from growers’ concern, the British Government is the world’s greatest wool owner because of accumulated stocks. It would not be in the national Interest if those supplies were sold at unsatisfactory prices.