Agricultural History Review, Volume 41 Part 1 (1993), pp. 44–59

Historians have claimed that the British government was able to mobilize the economic resources of the empire during the Second World War. Further, it has been suggested that this helped the British to hold the line against the Axis, and with the involvement of the United States and the Soviet Union, to eventually defeat Italy, Germany, and Japan. However a protracted conflict occurred between the Australian and British governments over the use to be made of Australian wool. Australia considered its wool a commercial product to be sold for a satisfactory price, while the British saw it as a strategic raw material to be used in economic warfare. The Australians were united in their negotiations with the British over what was for them an extremely important matter. For their part the British regarded Australian wool as just one of many issues on the policy agenda. The British government purchased the Australian wool clip in order to ensure its own supply, to deny wool to Germany, and to use it in negotiations with Japan and the United States. Their ability to do so was limited by Australian commercial and strategic objectives. In particular, the British wanted to influence Japanese foreign policy by withholding wool, whereas the Australians were concerned to appease Japan and to earn profits by selling wool to Japan. In the process, any illusions of imperial unity dissipated and a compromise based on economic and strategic interests and perceptions resulted. 

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