THE WHEAT PURCHASE

Dominion, Volume 10, Issue 3135, 13 July 1917, Page 6

THE WHEAT PURCHASE

WHY Wl3 HAD TO PAY. The purchase of a million bushels of wheat in Australia by tho New Zealand Government was discussed at length in the House yesterday afternoon. The debate was opened by the Hon. W. D. S. Mac Donald, the Minister who negotiated the purchase, making a statement on the subject.

One of tho things made clear by the' Minister's statement was that the Australian Government drove a hard bargain, and was guilty of something very like sharp practice as against both Hie Imperial Government and the New Zealand Government. Six or seven months before the purchase was made tho New Zealand Government asked the Imperial Government for nn option over a million bushels of wheat purchased already by the Imperial Government, but lying iii Australia in store. Tho Imperial Government had no objection, but wished to refer the matter to the Australian Government bofore concluding the bargain. In the end the Imperial authorities asked that the matter be held over until the representatives of Australia came Homo to attend tho . Imperial Conference. ■ The Australian representatives did not go to the- War Conference, but Mr. Massey was informed in England that the Australian Government would not. agree to allow the Imperial Government to sell to New' Zealand wheat for which the British Government had already paid, and on which the British Government was paying storage while ships were not obtainable to lake the wheat to England. The reason given by Mr. Tlnglics's Government for refusing to allow this transaction was that Australia looked to New Zealand for a market for its surplus wheat. In tho end New Zealand bought from the Australian Government a million bushels at !)=;. 6d., .f.o.b. Mr. MnrDnnuld in hie statement did not comment in any way on tho action of the Australian Government, except to endeavour to find excuses for it. He mentioned that two years ago we had refused to sell wheat to Australia, and suggested that this was tit for tat. Hut on that occasion the judgment of the New Zealand Government was that we had no wheat to spare to sell to anybody.