WAR STORES

King Country Chronicle, Volume XXXII, Issue 4640, 16 May 1938, Page 6

WAR STORES

EXAMPLE OF BRITAIN. AUSTRALIA FOLLOWS. OILS, METALS AND CHEMICALS. Sydney, May 7. Australia is closely following Great Britain’s policy of accumulating reserves of supplies to meet an emergency. While Great Britain is storing up foodstuffs, Australia is building up stocks of materials not procurable here, not necessary for defence. The plans are being kept secret, but the Minister of Defence, Mr. Thorby, revealed that the Federal Government is negotiating with oil companies for the building up of large supplies of petrol, fuel oil, and ‘lubricating oil. Maintenance of petrol stores presents difficulties. Petrol tends to deteriorate if stored for more than about two years. The plan being evolved will provide that, although stores will always be large, there will be no long accumulating of individual consignments of fuel. Stores will be used as the ordinary source of the Commonwealth’s peace-time supplies, and fuel withdrawn, from time to time will be replaced immediately by fresh supplies. Other materials of which stocks will be provided will be various forms c.f non-ferrous metal sheets, bars, tubes used in the manufacture of munitions, aluminium, and other light metals not at present manufactured in Australia. It will be necessary, also, to provide supplies of the key chemical substances used ih the manufacture of

explosives. Those include nitrates and the low-grade cotton used for modern propellants. Chemical reserves will be established to permit of the production of flares and posibly of gases.

By working through ordinary wheat buying channels and remaining in the background, the British Government was able to buy immense quantities of Australian wheat for its emergency stocks. It was able to keep its secret so well as to prevent skyrocketing of prices. Many men in Sydney’s big wheat firms worked for the British Government during the past three months. There were rumours that the real buyer was the British Government, but the orders came through in the usual way through the big English importers and flourmillers, and nothing leaked out to confirm the rumours. A leading wheat merchant said that it was obvious now that the British Government was the cause of the recent intensive buying. During that

period about 20 cargoes of Australian wheat were bought. The British demand ceased when wheat touched 6s lOd a cental, and it was obvious that it would commence again when prices dropped to a low level. Australian farmers benefited, not only by thg sale of many cargoes, but by the steadying influence on wheat prices by the purchases.

Another leading Sydney wheat man said that the British Government did most of its buying through the English wheat-milling firm of Joseph Ranks, Ltd.