WOOL FOR GERMANY

Poverty Bay Herald, Volume LXV, Issue 19808, 9 December 1938, Page 14

WOOL FOR GERMANY

IMPORTS CONTRACTING SUPPLIES FROM N.Z. Leading industrialists in Australia consider the present trade agreement between South Africa and Germany to be of the greatest importance in maintaining Germany as a competitor in the world wool market and in assisting natural wool to maintain its place in the general textile industry, according to Mr. A. It. Phillips, managing director of New Zealand Distributors, Limited, who has returned to Auckland from a business visit to Australia.

He said that in the period from September, 1937, to August, 1938, the agreement enabled Germany to buy South African wool to the value of £3,250,000 sterling. “It appears urgently necessary to direct attention to the problem of how further supplies of New Zealand and Australian wool can be made available to Germany. It is hoped that this important matter will be taken up by the proper authorities in both countries,” Mr. Phillips said. “German investigations have proved that the tendency for market contraction in German wool consumption shows no evidence of slackening and that the import of raw wool into Germany in 1936 was about 100,000,0001 b. lower than the average for the 1930-33 period.”

More Artificial Fibre Made

Against the fall in the consumption of natural wool, it was important to note the increased production in Germany of artificial fibre, which increased from 10,000 tons in 1935 to 90,000 tons in 1937. It was estimated that this year’s total would exceed 145,000 tons. It was felt that, though further replacement of wool in certain directions was perhaps inevitable, this tendency might be checked in others, if not permanently averted, provided adequate supplies of wool could be obtained. On the other hand, it appeared certain that once the use of wool was dispensed with, even to meet the exigencies of a temporary economic situation, the position might be irretrievable. The whole mechanism for the purchase and manufacture of wool would be disrupted and still greater vested interests established. Mr. Phillips added that as New Zealand’s internal prosperity was entirely dependent on its external markets, prompt action should be taken to consolidate every available overseas market. This was made all the more necessary by the recent AngloAmerican trade pact.