British Case For Wheat

Northern Advocate, 27 June 1946, Page 5

British Case For Wheat

(Rec. 11.30 a.m.) LONDON. June 26. ‘•A good seven days of work—certainly strenuous,” was the description by the Minister of Food (Mr J. Sfrachey) of his mission to Canada and America.

He was able to present Britain's case for wheat and other food supplies to the International Food Council. “It was absolutely vital that we should play our part in that irom the beginning.” he said. He had conversations in Ottawa aimed at a renewed agreement on wheat supplies for Britain, and did not doubt that a wheat agreement with Canada - would be made.

Mr Strachey said that if bread were rationed in Britain it would not mean better bread since the high extraction rate would be maintained. There was no immediate relief for Britain’s food plight, but there would be some home-increased variety by winter. Fruit would be the main item and others'would be dried eggs and possibly some canned goods. The brightest prospect was the improved outlook for Canadian and American wheat crops. A Washington message says certain United States Government officials, who requested anonymity, referring to Mr Strachey’s failure to obtain a wheat agreement with Canada, said the United States opposed an AngloCanadian 10-year agreement because it was regarded as inconsistent with United States multilateral trade poll cies.

The United States officials pointed out that the proposed British loan agreement provided for the revision of Britain's empire trade agreements. A British Embassy official said the price factor entered into American opposition to the wheat agreement because it provided for sales of Canadian wheat to Britain at prices well below the prevailing United States rate.

The British official believed negotiations on the wheat deal would be dropped temporarily pending consideration of another plan that migbt overcome American objections. ON U.S. ROCKS The Associated Press said the proposed long-term wheat agreement between Canada and Britain foundered on the rocks on United States opposition in what is regarded as an important test ease of the post-war international trade structure. It is understood that the British and Canadians were about to sign an agreement under which Britain would buy Canadian wheat at 125 Canadian cents a bushel, whereas the current Canadian price is 155 cents, compared with the American price of 200 Canadian cents, or 100 American.

Hence the proposed contract would be little more than half the American price.