WHEAT DUMPING

Greymouth Evening Star, 16 August 1933, Page 2

WHEAT DUMPING

U.S.A. INTIMATION.

[BY CABLE —PRESS ASSN. —COPYRIGHT.] (Recd. August 16, 10.30 a.m.) WASHINGTON, August 15. The Secretary of Agriculture (Mr Wallace) stated to-day that the United States was prepared to accept any reasonable plan for European cooperation, involving a reduction in wheat production, which was satisfactory to Australia, Canada, and Argentina. The statement followed the receipt of a report from Henry Morgenthau (senior), United States delegate at the London Wheat Conference. Mr Wallace said’ that unless the programme of international reduction of wheat production obtained, the United States was prepared to proceed with the programme of “subsidised exporting,” in order to remove the surplus grain. Mr Wallace described subsidised exporting as similar to dumping, except that it would involve the assurance that the United States could export approximately the amount of its normal exports rather than in excess of normal exports. Mr Wallace said that Mr Morganthau had' informed him the United States had offered to make a. substantial reduction in wheat acreage in the next two years, if Australia, Canada, and Argentina would also reduce production. LATER. Mr Wallace in his statement said: “The United States recognised the difficulties of European co-operation, and stood willing to engage in a joint reduction of programme with the other great exporters for a year at least. If European co-operation were not obtainable for the first year, we do not insist upon European co-operation this time, but if other exporters insist, we will accept any reasonable plan for European co-operation, satisfactory to Canada, Australia and Argentina. We shall wait till August 24 to see if theycan reach an agreement on definite action before we announce the wheat reduction for next year. If other exporters do not co-operate, we will make less reduction in acreage than if other countries were participating. We will maintain our wheat producers’ incomes, through benefit payments, and will move out of the country the burdening surpluses of wheat, such as exist on the Pacific Coast. If no agreement is reached, we will find a place for our wheat in Oriental markets.” WHEAT SPECULATION. WINNIPEG, August 15. The members of the grain exchange will meet to-day to discuss plans to counteract the effect of the market conditions at Chicago on the Winnipeg Exchange. Hedged in by the price restrictions of their own market, Chicago traders have invaded the Winnipeg pit for the protection of their trades during the past week. Heavy selling has resulted in a sharp depression of values, and to offset this the members of the Grain Exchange will meet to consider what action should be taken. PEGGING THE PRICES. WINNIPEG, August 15. Owing to the abnormal conditions surrounding other markets, the Winnipeg Grain Exchange, to-day decided to establish minimum prices for grain futures, thereby pegging wheat and coarse grains. Yesterday’s closing quotations were set as the minimum until further notice. The market immediately advanced as much as four cents. LEAGUE CONVENES MEETING [BRITISH OFFICIAL WIRELESS.] RUGBY, August 15. The following international wheat discussions begun at Geneva on May 10 and continued during June and July in London, the League of Nations has invited 27 countries, who are the chief importers or exporters of wheat, including Britain, Irish Free State, France, Germany and Italy, to confer at London on August 21. The invitations have been issued in the name of Australia, Canada, Argentine Republic and United States, who have requested that discussion be held within the framework of the World Monetary and Economic Conference. The League will supply the service of an expert secretarial staff. It is concluded that the fact the Conference is being called, indicates an agreement has been reached among the four big wheat-producing countries on limitation of production.