AUSTRALIA'S WOOL QUOTA PLAN
Faced with a glut of wool on the world market, the Australian Wool Corporation has decided to dispose of 15 to 20 million sheep, give wool growers quotas for production, and maintain the current minimum price. AWC chairman Hugh Beggs says these actions will insure the quantity of wool offered for sale next year does not exceed global demand. Under the industry plan, announced last week, wool producers will be assigned quotas equal to about 75 percent of this year's production. Quotas will be tradable.
At the same time, the Australian government is negotiating a credit plan with the Soviet Union, one of Australia's major wool buyers, to pave the way for new purchases. The Soviets still owe $80 million from prior year's purchases.