GREAT NITRATE AGREEMENT.

Evening Post, Volume CVII, Issue 28, 1 August 1929, Page 16

GREAT NITRATE AGREEMENT.

The attitude of the United States towards the new agreement just concluded between German, British (Imperial Chemical Industries), and Chilean nitrate producers is being eagerly canvassed in Berlin. Owing to" the Sherman Anti-Trust Laws the United States is unable to enter into price agreements such as that just concluded, and there is speculation whether American nitrate producers may not retaliate with a demand for an increase in the tariff on nitrates. The I.G. Farbenindustrie intends to enter into direct competition with American chemical industry by erecting a synthetic nitrate plant in Louisiana in co-operation' with Standard Oil, with which the I.G. Farbenindustrie is affiliated. The importance of the agreement lies in the fact that Germany during 1920 will produce 550.000 tons of fixed nitrate, or approximately half the world s output. It is understood that the Norsk Hydro, the Norwegian nitrate profrf Ini? ? onc ci'". largely controlled by I.&. tarbenindustrie, will join in the price agreement. New prices for fertilisers were announced and took effect from Ist July The nitrate agreement, by lowering of prices, will save German farmers £f,250----000 annually, declares the "Berliner Ta"eblatt." Britain, Chile, and Germany will now. rule the world market ibr nitrates, adds the newspaper, which comments favourably on the advantages for agriculture of the new group's policy of lowering price*