TRADE BLOCKAGE

Grey River Argus, 21 May 1941, Page 4

TRADE BLOCKAGE

AUSTRALIA’S PLAN Storing and Processing lAus. & N.Z. Cable Assn.l (Received May 21, 1.40 a.m.) SYDNEY, May 20. Sir Earle Page outlined to-night a plan for stabilising primary production prices and marketing surplus produce that cannot be sent to Britain in the ordinary way, owing to the great shortage of shipping and particularly of refrigerated vessels. He said the Government had arranged its' course of action in consultation with. New Zealand and other British Governments. Britain’s vital food needs were a primary object, but the Lease and Lend Act had ensured sufficiency. It was desired to give Australian producers security, but it meant a revolution for Australia, so as- to. prevent collapse of its economic and financial structure. Mr Menzies, who returns this week, and speaks shortly in Sydney, has reached an agreement with the British Government as to finance, etc. All that could be shipped to Britain would be. The surplus not able to be sent would be so dealt with as to give the producers reasonable prices, but not at the British control level. There was now a ’prohibition of the killing of lamb for ex-| port. Australian troops would be| supplied -with the best canned or ( frozen beef. Mutton would largely, be canned and surpluses would be 1 reserved. The producers would be I paid. Meat concentrates would be produced,, which could be kept or exported on non-refrigerated vessels. Meat would also be dehydrated. Canned sausage and bacon would be produced. There was less space to ship butter, and dairy farmers would turn to cheese. Milk would be processed, powdered and condensed, and butter would be tinned. He said the new processing would be a permanent in-, dustry. Machines were being im- j ported from China for drying eggs.l All this produce could be shipped as. general cargo. The wheat growers would have a guarantee that 140 mil-* lion bushels would be accepted by| the Government, whether it was shipped or stored. More produce must be locally sold. The people could help by buying lamb. AU must help. There was also a fodder conservation plan, to which surplus wheat could be diverted. Surplus sugar was to be stored.