WHEAT CONFERENCE

New Zealand Herald, Volume LXX, Issue 21577, 23 August 1933, Page 9

WHEAT CONFERENCE

HUGE WORLD GLUT EFFORTS TO FIND REMEDY LIMITATION OF EXPORTS SEEKING AN AGREEMENT \ By Telegraph—Press Association—Copyright LONDON, Aug. 21 The World Wheat Conference reassembled in private to-day, when delegates representing 29 countries attended. A communique explained that the Big Four —Canada, tho United States, Australia and Argentina—had invited the European importing and exporting; countries to endeavour to reach an international agreement to limit exports to the effective demand with the object of eliminating the abnormal carry-over which has been depressing the market for four years; also to endeavour to stabilise prices at a reasonable level that would be remunerative to the farmer and fair to the consumer. The entire wheat situation is chaotic and it is impossible to predict the outcome of the renewed negotiations. The delegates to-day faced new figures which revealed a staggering world glut far worse than was anticipated at the adjournment of the conference in July. The carry-overs for the year ended July 31 were approximately: Canada, 21,000,000 bushels; United States. 39,000,000 bushels. Added to this is Europe's 100,000,000 bushefs crop, which has greatly exceeded anticipations owing to favourable weather having dislocated the estimates and has caused consternation in the consuming countries. It is felt that the collapse of the conference would produce a terrible slump. Consumers' Outlook Worse

Thus the problems of the conference revert to the American Continent, while the outlook in the European consuming countries has become worse owing to the magnificent season and unexpectedly high yields, plus a growing disposition to shut out foreign wheat and increase their own production of wheat.

Calculations of wheat supplies lately have proved so unreliable that the delegates are chary of accepting any figure at its face value. Mr. S. M. Bruce and' Mr. McDougall are members of a sub-committee which is dealing with a proposal to establish an advisory committee. This naturally depends largely upon the extent of the European Governments' instructions to their delegates on the draft agreement submitted by the exporters, but its object is visualised as " watchdog" body, which will see that any agreement undertaken is faithfully observed. German Co-operation Necessary Naturally there is little disposition to optimism. Te begin with, the exporting countries have made little progress with the bringing of Russia into line with their proposals. Secondly, nobody expects the importing countries to accept the exporters' draft immediately and as a whole. The German representative to-day admitted that he was present only as an observer without the powers of a delegate, which he undertook,to seek from Berlin. Germany's inclusion in any agreement is doubly important in view of the recent exceptional sales of German parcels on the British market. Well-informed people emphasise that in view of the difficulties of the delegates themselves there is little hope of a quick agreement. They anticipate that the importers will inundate the conference with reservations and modifications.

United States and SurplusHence it is suggested that the proposed advisory committee should be located in London and become practically a permanent body. Probably, ultimately it will have thrust upon. i|» the lengthy task of seeking some measure of agreement from the importers' multitudinous suggestions. Mr. Frederick Murphy, leader of the United States, delegation, says he is still hopeful that an agreement- will be reached. He denies a statement attributed. to him by the Daily Express that he possesses a plan "which will absolutely crush the wheat markets of the world if the conference fails." Mr. Murphy admits that the United States will have to sell her surplus in Europe or elsewhere if the conference fails, but even in the last resort, he says, she will do this only in an orderly manner.