“RACKET” IN WHEAT

Gisborne Herald, Volume LXXIV, Issue 22438, 19 September 1947, Page 5

“RACKET” IN WHEAT

ARGENTINE SALES DOUBLE U.S. PRICE ALL PROTESTS IGNORED (N.Z.P.A.—Reuter—Copyriglit.) (9 a.m.) NEW YORK, Sept. 18. Argentina is charging the needy western nations 5 dollars 95 cents a bushel for wheat compared with the United States charge of 2 dollars 70 cents a bushel, says the New York Herald Tribune's correspondent in Washington. Both prices are for wheat loaded aboard ship at the port of export. The United States price represents a payment to farmers, plus handling charges. United States food officials said that the Argentine Government, which sells wheat at twice the world price, and requires payment in United States dollars, is charging all the traffic will bear and is slowing down deliveries in the hope of an even higher price in order to finance the industrialisation of Argentina and to build up its military machine.

The Argentine Government is paying its farmers the equivalent of 1 dollar 53 United States cents a bushel. The Argentine price and insistence on dollars in payment is causing concern to the Marshall planners, but the State Department’s gentle protests thus far have met with no response. The International Emergency Food Council in July sent the Peron Government a polite protest but received no reply.

The council's official today described Argentina's attitude on wheat as “sheer racketeering.” Argentina at present, fills 15 per cent, of the world’s wheat imports.