Deadlock In Dealings With Argentina

Press, Volume LXXXVI, Issue 26204, 30 August 1950, Page 7

Deadlock In Dealings With Argentina

(N.Z. Press Association—Copyripht) (Rec. 8 p.m.) LONDON, August 29. The deadlock between Britain and Argentina over meat shipments has now lasted a month, and holds dangerous possibilities both for the Argentine and her sterling creditors. The Buenos Aires correspondent of the “Financial Times” says that the cessation of meat shipments to Britain must progressively diminish the dwindling sterling reserves of the Argentine. In Argentina itself plain efforts are being made to change the pattern of the meat export trade, so that it can be directed from Britain to South America and Europe. Significant of this, the correspondent says, is the Argentine Government’s decision to change the meat grading system and adopt a payment procedure which will encourage the production of lighter steers suitable for the South American and European markets. Argentina, however, is short of so many essential materials and so much equipment that she can ill afford to lose the exchange earned in the meat trade with Britain.