THREAT OF WOOL SALE BOYCOTT

Southland Times, Issue 23792, 14 April 1939, Page 6

THREAT OF WOOL SALE BOYCOTT

Minister Admits Discussions

REPRESENTATIVES OF FRENCH BUYERS

CONSUL’S REFERENCE TO DISEQUILIBRIUM (United Press Association) WELLINGTON, April 13. Commenting on the report that French wool buyers had threatened to boycott the New Zealand wool sales because of the import regulations the Minister of Finance (the Hon. W. Nash) admitted that he had already had discussions with representatives of the French buyers on the question and added that he expected shortly to reopen the discussions with them. “Officially I have received no information on the matter from my Government, so I have nothing to say about it, but I do know the attitude of the French people towards this trade disequilibrium,” said M. Poquet, Consul for France. “You see, France buys annually from £1,500,000 to £2,000,000 worth of wool from New Zealand, in New Zealand or through London, but New Zealand buys goods from France to the value of, say, £240,000 to £250,000. Naturally the French business man regards this want of balance as extremely unsatisfactory, arguing that out of every pound France buys from New Zealand only some 5/- is spent by New Zealand in France.” He admitted that the position was not singular, but for many years past France had suffered from adverse trade balances with other countries and French business people, he believed, felt that some equitable adjustment was long overdue. Personally, he under-' stood the New Zealand position, but the French people did not understand it as well. They looked at the trade returns. New Zealand’s special position did not interest them. They pointed to the figures and the substantial balance against them.

POSITION REGARDED AS EXAGGERATED

INQUIRIES BY DUNEDIN BROKERS (Special to The Times) DUNEDIN, April J 3. Though growers and brokers in Otago were seriously perturbed by the announcement from Christchurch that French operators in the wool market contemplated reprisals for the remainder of the selling season as a result of the restriction placed on imports from France under the Government’s recent regulations, it would appear that the position has been exaggerated. It is known that dissatisfaction exists over the unequal balance of trade between France and New Zealand, but drastic action of the kind foreshadowed in Christchurch is considered unlikely in the meantime. The Dunedin Stock and Station Agents’ and Woolbrokers’ Association has been informed by an important continental operator that so far as he knows' Continental buyers will be operating as usual at the Dunedin sale on Wednesday. In confirmation of this, two Dunedin firms of brokers today received advice from prominent French buyers at present in Christchurch that no instructions or suggestions had been received from the French Government about the curtailment of buying in New Zealand. A meeting of the Dunedin Woolbrokers’ Association was held this afternoon at which the Christchurch announcement was fully discussed. At the conclusion of the meeting the president, Mr Newman R. Wilson, got into telephonic communication with the chairman of the New Zealand Woolbrokers’ Association in Wellington and advised him that Dunedin selling agents were greatly concerned at the announcement made in Christchurch. The New Zealand Association was urged to approach the Minister of Finance (the Hon. W. Nash) on the subject and to insist that an agreement be reached with the French representatives _at present in New Zealand with a view to the continuance of their buying activities until the close of the present season, pending a more complete arrangement before next year. The importance attached to foreign competition, and especially to that of France, at the Dunedin wool auctions may be gauged from the fact that within a few hours of the announcement from Christchurch some growers raised the question of the withdrawal of their clips from the catalogues that are at present being compiled for the final auction of the season on Wednesday. Added to this is the fact that at the March sale in Dunedin Continental operators lifted by far the greater proportion of the offering of more than 25,000 bales, one operator alone taking more than 3500 bales. Moreover, the bulk of the wool bought on Continental account was destined for French manuf acturei*s» Brokers interviewed on the subject today expressed concern at the possible withdrawal of so vital an influence on the buying benches as France. Not only on the score of quantity is the French bidding desirable. The experience of the past has shown that the maintenance of price levels depends very largely upon the competition of foreign buyers, irrespective of their actual purchases.