DANISH BUTTER

Greymouth Evening Star, 30 July 1946, Page 8

DANISH BUTTER

BRITISH-LONG-TERM CONTRACT PRICE COMPARISON LONDON, July 29. Denmark has accepted the British price offered for a long-term contract for Danish butter, bacon and eggs after two months’ negotiations. Details are not available at present, but it is known, says the Daily Mail s correspondent, that Britain wanted a three-year agreement, and offered a slight increase on the prices paid for previous purchases. The special correspondent of the Australian Associated Press says that although the report from Copenhagen infers that Denmark has accepted a sacrifice in her butter contract with Britain, it is learned in Australian and New Zealand, quarters in London that the “price” which Denmark accepts for, her butter is considerably above the prices which Britain is paying those two Dominions. The rate which Denmark finally accepted is under that which she originally asked, but it is sufficiently high to perturb Dominion negotiators.

The correspondent learns that New Zealand, during the negotiations, wanted a higher rate than Australia, who, in view of Britain’s food needs and commitments was ready to sacrifice strictly commercial rights and meet her offer.

Russian bidding for Danish supplies largely conditioned the British and Danish' negotiations, for although Denmark preferred the resumption of British trading which the war interrupted, the Russians were so insistent on getting a foothold that Denmark found herself in a position in which she could not re-fuse to divert much of her supplies Io the .Soviet. The Russians, moreover, offered to barter winter feed for livestock, which is even more valuable to the Danes than currency.