CANADIAN WHEAT SUPPLIES

Press, Volume LXXXVI, Issue 26122, 26 May 1950, Page 7

CANADIAN WHEAT SUPPLIES

British Talks Fail

MAIN DISPUTE OVER PRICES

(N.Z. Press Association—Copyright)

(Rec. 8 p.m.) LONDON, May 25. Talks in London between Britain and Canada on a now wheat agreement finally broke down last night, says, the political correspondent of the “Daily Express.” The main dispute was over prices. Canada wanted two dollars a bushel, but Britain wes unwilling to pay more than a dollar and a half. Dollar difficulties generally and the operation of the Marshall Plan also contributed to the breakdown.

According to the “Daily Express.” until now Britain hss bought Canadian wheat largely wi’h Marshall Plan dollars. It is likely that the United States will have a big wheat surplus in the coming year, and will be unwilling to finance British wheat purchases outside the United States.

On the other h-nd, the British Government contended at the talks with Canada that it could not afford to use its own dollars, earned by exports, for wheat.

New moves towards an agreement with Canada will be made after the Chancellor of the Exchequer (Sir Stafford Cripps) and lhe Canadian Minister of Trade and Commerce (Mr C. D. Howe) report to their Governments. The present British-Canadian wheat agreement will end next month.