NOT THREATENED

Evening Post, Volume CXXVII, Issue 85, 12 April 1939, Page 9

NOT THREATENED

EMPIRE WHEAT

USE IN EMERGENCY

REPLACEMENT OF STOCKS

(Received April 12, 12.30 p.m.) WASHINGTON. April 11. Senator Byrnes, in an interview with the Australian Associated Press, disclaimed any intention to injure Australian. Canadian, or other normal suppliers of the British wheat market by the barter plan. "The proposal," he commented, "has no connectioii with ordinary commercial transactions and normal market operations should not be affected, while our Australian and Canadian friends should not be injured.

"The proposal is to store all wheat, cotton, and other goods under an agreement not to enter commercial channels for at least five years. With wheat particularly, and also to some extent with rubber, there would be deterioration which would necessitate portion of the stores being consumed each year in order to avoid loss, but an equal amount would be replaced in storage. Therefore, the stored stocks would remain the same.

"It should be remembered that tho proposed stocks would be identical with the stocks of military materials which we already hold in reserve, such as ammunition. That also deteriorates, but if we replace a regular amount equal to what is withdrawn for consumption each year we do not disturb the regular business. I see no way in which the plan would affect the regular consumption demands of Britain or elsewhere. Therefore I see no effect upon normal commercial operations. It is only a matter of transferring surpluses from a location where they are of limited value at present to places where they may be of considerable value in the event of an emergency."

Other officials conceded that Australia and Canada might lose to the extent that the United States would substitute for them as a supplier of at least a part of the British reserves, but contended that neither Australia nor Canada could regard the move as disadvantageous to their normal business.