ARGENTINE MEAT SURPLUS

Press, Volume LXXXII, Issue 24984, 19 September 1946, Page 5

ARGENTINE MEAT SURPLUS

BRITISH PURCHASING AGREEMENT PLANS FOR NEW TRADE TREATY (N2. Press Association—Copyright) (Rec. 12.30 a.m.) LONDON, Sept. 18. The text of the trade agreement between Britain and the Argentine shows that agreement has been reached on payments for meat and railways, and thjrnegotiatisa of a new trade treaty. Trade financial payments between Argentina and the sterling area will continue to be settled in sterling. All sterling payments received by Argentina will be freely available for payment in current transactions anywhere. The British mission agreed to buy the exportable meat surplus from ArfQur years frol » October 1, 1946, after providing for a reserve for sale by Argentina to other markets of not more than 17 per cent, during the first year and 22 per cent in the second year. Prices will exceed the prices of the bulk contract made at the outbreak Of w» by at least 45 per cent Britain will buy any balance of meat reserves which Argentina fails to sell to other markets. Definite prices for British meat purchases wilt be fixed with reference, to the results of special discussions between the British and ArSeitiiman. technical experts. The meat prices arranged will remain in force until the end of September, 1948. Britain, in order to facilitate adjustment to the present costs Of production, will make a single cash payment of £5,000,000 in “free” starting to Argentina. ..The Press Association points out that the present meat prices are already 35 ner cent, above those paid at the outbreak of the war. The pay’Sreement means that £20.000 000 of Argentina’s £130.000.000 accumulation will be freed during the next four years. No Effect on Ration

.The Itoitish-Argentine agreement will net affect Britain’s meat ration of 16d worth a week,” says the agricultural eonespondent of the "Dairy Express.” The Minister of Food will be enabled to maintain the ration, but any l ncreaae is dependent on extra supplies from Australia. Canada, and South Athome farms * ri!e on

“The ration without Argentina’s supplies might have been cut by 4d a week. Argentina’s beef export level w>U be maintained, but the price will rise from T*d to BJd per lb. The price for lamb will rise from B}d to about ®ti. but will still be below the price paid to New Zealand, the largest supplier whose exports average slightly less than Is a pound.” The agreement provides that free avwlabflity of sterling received by Argentina can be exercised by transfer to American account, or, at the Bank of England s option, into gold, so long as the present technical difficulties, which are temporarily preventing transfers of sterling to certain other countries, exist. As at the date of the agreement the spot balances of sterling accumulated on the Argentine special account are to be established. Argentina will be free to use this, balance, also to repatriate outstanding sterling publie debts and repatriate British investments in Argentina. ~77ie agreement provides for immediate discussions for the modification of the recently expired British-Argen-tine treaty, the Provisions of which will continue in force until December

It provides also for the formation of an Argentine company to acquire and operate the assets of Britishowned railway companies .in Argentma, the new company accepting resP™?a‘.i:“lltJl ter the rights and responsi bill ties of the British companies, except in relation to debentures issued by the British companies. The agreement envisages the completion of the railways transfer by January 1,1947. “The fact that an agreement has been reached with the Argentine is considered satisfactory in London financial circles,”, says the Australian Associated Press, “bvt there is som* trepidation lest the desire to secure good terms for the transfer of the Brit-ish-owned railways may have betrayed Britain into unduly generous treatment of Argentina’s £140,000,000 sterling balances This would set a precedent tor the huge total of sterling balances held by other countries.

"The market for Argentine railway stocks was more animated than for several years, debenture issues gaining up to six pointe, preference issues up to .five, and ordinaries up to two and a half. Elsewhere sentiment has been cheerful, as Wall Street held quietly steady.