BASIS OF WHEAT PRICE

Hawera Star, Volume LIII, 26 August 1933, Page 9

BASIS OF WHEAT PRICE

World Agreement Reached ADJUSTMENT OF TARIFFS Success 0? ( Short Conference LIMITATION OF EXPORTS. REDUCTION IN PRODUCTION (British Official Wireless.) Received 2.15 p.m. to-day. RIUGBY, Aug. 25. Agreement oil the world price of wheat and on the limitation of supplies was readied to-day by the Wheat Conference in London at which 29 countries were represented. The Canadian Premier, Mr R. B. Bennett, who was chairman of the conference, announced that exporting countries had accepted 32 gold francs per quintal, and 63.03 gold cents per bushel as the price level at which importing nations may be asked to readjust tariffs on wheat. The exporting countries had, lie explained, desired a higher price, hut in view of representations made by other delegations they were prepared to agree to this price. The conference started on Monday. It is, therefore, one of the shortest international conferences on record. The agreement was signed at 10.30 p.m. after delay due to complications m its drafting. The delegates condl'uded the session after midnight. The signatories are: Importers, Germany, Austria, Belgium, Bulgaria, France, Britain, Greece, Hungary, Ireland, Italy, Poland, Rumania, Spain, Sweden Czechoslovakia, Switzerland, Jugoslavia; exporters, Australia, United States, Canada, and Argentine, while Latvia, Turkey, Norway, Denmark and Esthonia. will probably sign later. The big four’s restrictions are based on the average sowings of 1930-33 after deducting the normal domestic requirements. The exporting countries agree to limit the total export of wheat in 1934 to 560,000,000 bushels and, with the exception, of Russia and Danubian States, to reduce production by 15 percent. The agreement will be in force for two years. The importing countries, m a paragraph to be added to the agreement, declare' that measures affecting the areas of wheat grown and the degree of production are primarily dependent on domestic conditions in each country and any changes in those measures must obtain the .sanction of the legislatiure. * The’ intention of the agreement is nevertheless, that the importing countries will not take advantage of a reduction of exports by developing domestic policies iir such a way as to prejudice the efforts of the exporting countries in the common interest to restore the price to a remunerative French delegate informed the conference that his Government was prepared to give proof of the desire for an agreement by accepting the P r )e e - A German delegate spoke on similar On Ibehalf of Russia it was stated the Soviet would sign, hut with a reservation as to the limitation of the exported wheat. The Danubian States intimated that they were m the same position as Russia. There was a proposal from Amcnca that the price leve.ll question .be left over to be determined by the wheat advisory committee which is being set up. London and Italian representatives also urged that the matter be dealt with later, but their prospects were defeated. Britain and other non-exporting producing countries sign the agreemen in regard to the figure ot 63.08 golc cents per bushel inserted m the final agreement. The index figure for the week ended August o was, on tins calculation, 55 gold cents, and is now between 53 and 54. Jt will be seen, therefore, that the price is a rise ot approximately ten gold cents pei bushel, and it will be maintained a that figure for a period ot four months before it will be necessary for the importing countries to adjust tariffs. Wheat prices advanced on the Liverpool futures market when tho news of the agreement became known. Prices were Jd to £d down at th ® °P emng ’ but rose id to *d higher than yesterday’s close.