LACK OF ACTION ON THREATENED FOOD SHORTAGE

Grey River Argus, 28 September 1949, Page 8

LACK OF ACTION ON THREATENED FOOD SHORTAGE

REUTER, LONDON — An international committee of experts in a report published last week calls upon member governments of the Food and Agriculture Organisation of the United Nations to create an international commodity clearing house. The purpose of this clearing house would be to enlarge world trade and secure the effective distribution of food which is surplus to the present day demand. It would have a capital of 5,000.000,000 dollars contributed in national currencies. Twenty per cent would be paid in immediately and the remainder would be called up as required. Lord Bruce, the independent chairman of the council of the F.A.0., said the report would be discussed by the F.A.O. Council early in November and by the full annual conference on November 21. Lord Bruce was strongly critical of the delay which, he said, governments had shown in recognising the great transition in the last two or three years from a shortage of agricultural products to potential surpluses. Today he said, surpluses were in sight for cereals, sugar and fats, particularly in th e hard currency areas. Lord Bruce added: “Not a single government has done anything about the situation. They were two years late in realising there was a problem and a working committee which considered the matter presented to the Council of the F.A.O. in Paris last June the most dreadful report that was ever submitted to any conference.” Lord Bruce said that in the end the Director-General of the F.A.O. was instructed to prepare a factual report on world commodity markets.

The report had been submitted to member governments with a strong recomnlendation for approval and implementation. “Unless public opinion is stirred to agree that something be done, I have a pretty grim foreboding the governments will not do anything. They have to be .made to do something. All depreciation of currencies and trying to pull things together will fall to the ground if you get a reversion in agriculture in tlie world of today similar to the reversion that took place in the late twenties and thirties and which brought about tihe world crisis in 1932.”

The conclusion reached in the report is that surpluses of farm products are appearing in the dollar areas whil e a great need and desire to buy remains in dollar short areas. The report adds; “'Unless an early solution is found surplus countries will pay to restrict or destroy production and importing countries will pay production; bonuses for uneconomic self-sufficiency. Regimentation will increase and international trade will be further disorganised.” The report said that the purpose of the international commodity clearing house would be to ‘‘build a bridge” over which surpluses could move to deficit areas for constructive uses through regular channels of trade by making possible and advantageous the enlargement of world trade. This would help to restore mutilateral trading.