CHILEAN NITRATES

Hawke's Bay Tribune, Volume XXIV, Issue 94, 4 April 1934, Page 8

CHILEAN NITRATES

Rushed for Fertiliser Trade

NOT FOR WAR RESERVE

The Chilean Government has been much embarrassed by the scare news published in the American and European press that phenomenal shipments of nitrate ate being made from the west coast of South America in expectation of war, say s a Santiago correspondent. One report which received wide circulation, was that “enormous quantities” were being shipped to Japan and Russia; another, prominently published in New York, was to the effect that the United States had ordered 300,000 tons, ostensibly as a stoeft of fertilisers for the farmers and cotton growers, but actually as a war emergency reserve.

Disappointment is expressed in governmental circles that the legitimate trade of Chile, which is experiencing a favourable reation following reorganisation of the industry and a general improvement in world business, should be misconstrued, possibly to national prejudice, |

An ordinary movement of nitrate from Chile to meet the seasonal demand has been presented in an ambiguous light, obviously, in certain cases, with the intention of causing an erroneous impression. The national press suggests that the Government should “keep an eye on these tactics” and, if necessary, lodge a protest. A number of shipments have been and continue to be made to Japan, but not to the extent to justify sensational rumours of war preparations. Nipponese purchases of nitrate are only just above normal and are explained by Japan’s desire to increase its cotton exports to South America for which it has to take something in exchange. In Chile’s case it is natural that nitrate should rank first as a barter commodity. France is quite candid on the subject. It keeps at least 225,000 tons of the Chilean “fertiliser” in stock as war reserves, though it is only fair to that country to point out that its primary interest in natural nitrate is as a crop stimulant and that the farmers are allowed to draw on the Government’s reserves.

Recently under at least a dozen compensation pacts, Chile has vastly increased its nitrate shipments but, in each case, wth the possible exception of France, every ton is exported and ultimately used as a fertiliser. All sales propaganda is conducted with that object in view, and it is manifestly unfair that the Chilean Government should be the target for criticism arising from false reports. It is pointed out that nitrate is being shipped to the United States for the usual fertiliser purposes.