PURCHASE OF WOOL

Wanganui Chronicle, Volume 79, Issue 126, 29 May 1936, Page 7

PURCHASE OF WOOL

INTENTIONS OF JAPAN TRENDS TOWARDS SOUTH AFRICA REGARDED AS DRASTIC IN AUSTRALIA [By Telegraph—Press Association—Copyright] Received May 28, 10.5 p.m. SYDNEY, May 28. The report that Japan has decided to reduce the annual takings of Australian wool to 250,000 bales by buying in South Africa and New Zealand, is regarded as drastic in wool circles in Sydney, but it is contended that buyers from other countries who operate in South Africa and New Zealand will be compelled to transfer some of their obligations to Australia as supplies in any quarter cannot be automatically increased. It is also argued that if Japan buys more extensively in Africa and New Zealand she will find it necessary to change the class of fabrics she chiefly produces. Topmaking wools mainly will be affected by the Japanese decision to boycott Australian woo]. The fact that the Japanese do not intend to attend the Melbourne June auctions is not regarded very seriously by wool-buying brokers, who are discussing the whole question of trade with Japan early next month. A cable from London, received yesterday, stated that the Financial Tinies’ correspondent says it is understood that the Japan Wool Industry Association has decided to reduce the annual takings of Australian wool by 250,000 bales, which will be made up by buying in South Africa, New Zea land, and South America. Japan will not participate in the Melbourne June auctions, sending employees to South Africa and South America to start buying in August.