SURPLUS PRODUCTS

Manawatu Standard, Volume LXI, Issue 199, 24 July 1941, Page 8

SURPLUS PRODUCTS

MEETING THE PROBLEM. BRITAIN’S INTEREST. (United Press Association —Copyright) (ilec. 2 p.m.) RUGBY, July 23. Tho problem of mounting stocks of surplus production, particularly in tho southern Dominions, has been the subject of fruitful discussion between the British Government and Mr Menzics and Mr Fraser during their visits to this country. The accumulation of such a surplus is recognised as inevitable owing to the claims of the combined armed forces of the empire on the available shipping, and also owing to the resolve of'the people of Britain to forgo all unnecessary consumption. The eo-operation of Messrs Menzies and Fraser, however, has enabled a complete agreement to be reached on eer-. tain principles, solved in the interests of all. Mr A. Greenwood outlined these principles in a broadcast to the Empire on Wednesday night as follows :

“Firstly.—Tlie-United Kingdom will purchase from these countries all that the ships at our disposal allow us to transport. “Secondly.—The Dominion Governments will make every effort to prepare their produce in the easiest and most compact form for shipping, making full use of modern processes. For example, in the boning, canning, and pressing of meat. They also will do what they can to develop alternative markets “Thirdly. Tho United Kingdom Government and the Dominion Governments will join in building rip reserve stocks of all storeable varieties of foodstuffs, and -will share equally in the expenses of acquiring and holding these stocks.

“Fourthly.—ln making these purchases tho Government will keep before them a dual aim—to maintain the efficiency of the producing industries and at tho same time seo that no unmanageable surpluses pile up in future. Tho United Kingdom Government, of course, is aware that this problem of surpluses is not confined to Australia and New Zealand. It has already taken action to meet similar difficulties which have arisen even more acutely, though on a smaller scale, in the various colonics.” Mr Greenwood then mentioned the problems of Canada and India. “Canada is faced with a large surplus of wheat and has adopted a measure of restriction of acreage. She has faced up to hard facts and her courageous policy should have a beneficial effect on the whole future balance of supply and demand in relation to the most essential of all foodstuffs. Similarly, India, faced with a problem of a record crop of jute, has had conspicuous success, and the bold- action of the Government of Bengal in drastically restricting the coming crop.” Mr Greenwood summed up: “We, in partnership with the other Governments of the British Commonwealth of Nations, shall do what we can to reduce the wild fluctuations of output and prices which draw in their waves of suffering both producers and consumers. We shall accumulate stores of food which can be rushed to famished millions of Nazi-dominated and Nazilooted Europe as soon as the invader has been ousted from their territories. Thus, by co-operation, first among ourselves and in due course we may hope, with the United States and others outside the Empire, that our twofold problem will be solved.”