SUGAR SUPPLIES

Evening Post, Volume CXXIX, Issue 92, 18 April 1940, Page 13

SUGAR SUPPLIES

EMPIRE SCHEME

DOMINION BECOMES A PARTY

AGREEMENT MADE

The New Zealand Government has agreed to become a party to the British Empire scheme for the purchase and distribution of sugar, and has advised the United Kingdom Government of its decision, according to an announcement made yesterday afternoon by the Hon. W. Forgan Smith, Premier of Queensland, at the conclusion of his negotiations. The chief reason for Mr. Forgan Smith's visit was .to discuss this question with "the New Zealand Government.

'"The policy is based on an international agreement, to which Australia is a party, arrived at in London in 1937," explained Mr. Forgan Smith. "The policy now* is that for the period of the war Great Britain shall, as far as possible, purchase requirements of sugar within the Empire, that is,, in the Dominion's and Crown . Colonies where sugar cane is produced.

"It is handled by the Ministry of Food, which diverts the sugar to wherever it is requu'ed. The New Zealand Government has informed me that it has agreed to this proposition, and has intimated its concurrence to his Majesty's Government in the United Kingdom.

"The supplies for New Zealand will, in the main, come from Queensland, and this Dominion will be assured of an adequate supply .of sugar during the period of the war at a reasonable price. Queensland supplied a large quantity of sugar for New Zealand last year by direct sale, and this is an extension of' the arrangement made last year." - ■ ADVANTAGE TO DOMINION. ; Mr. Forgan Smith said the agreement would be of advantage to the people of New Zealand in many ways. During the last war the price of sugar rose very steeply, and as high a price as £19 a ton was paid where it was obtainable. Under the conditions. now envisaged the price would be practically the same as at present, and the people would have the advantage of knowing that they were using a product produced entirely by white labour under decent industrial conditions. .All the sugar in Queensland was grown and handled by union labour from the planting to the refinery and to the ships.

So far as Quenesland was concerned, he said, the agreement would mean an assured market hear at hand for that quantity of sugar, and New Zealand would get the advantage of the lower freight rate compared with England. Another advantage of the arrangement was that it-preserved sterling exchange. Mr. Forgan Smith said he had also conducted negotiations for the sale of more fresh Queensland pineapples and timber to the Dominion, but these were not yet finalised. -Queensland had supplied about 30,000 cases of pineapples to New Zealand last year. The Premier has had consultations with the Prime Minister (the Hon. P. i Fraser),- and has conducted the trade negotiations with the Minister of Customs (the Hon. W.: Nash), and-the Minister of Supply (the Hon. D. G. Sullivan);" "I appreciate very much the courtesy shown to me by the New Zealand Government, and by the people I have met generally while here," Mr. i Forgan Smith concluded.