CANADIAN WHEAT SUPPLIES

Otago Daily Times, Issue 26215, 27 July 1946, Page 7

CANADIAN WHEAT SUPPLIES

BRITAIN ENSURES- SECURITY LONDON, July 25. Announcing that a contract had been signed between the Governments of Canada and Britain for the purchase of Canadian wheat for the four years beginning on August 1, 1946, Mr John Strachey, the Minister of Food, said in the House of Commons that the agreement provided that the United Kingdom purchase:—l946-47, 160,000,000 bushels; 1947-48, 160,000,000 bushels; 1948-49, 140,000,000 bushels; 1949-50, 140,000,000 bushels. Mr Strachey said that if the harvest were good, larger quantities would be Drovided. In the first two years part of the wheat would be supplied in the form of flour —in 1946-47, 500,000 tons, and in 1947-48, 400,000 tons in each of these two years an additional quantity, up to 140,000 tons, will be dependent upon the crop), and in 1948-49 and 1949-50 a minimum of 300,000 tons. Mutually Advantageous Plan Mr Strachey said the agreement ensures substantial quantities of wheqt during the expected shortage at a price below the free market. The price for the first year was 30 per cent, below the current United States prices, and still more below the open market prices in Argentina. ivir Strachey said that in a later period of the contract Canada would receive the advantage of a guaranteed market and guaranteed minimum prices. In determining the 1 actual prices in the last two years regard will be given to the extent to which the agreed price for the previous two years fell below the world price for the period. Canadian farmers were, therefore, protected from crippling losses should there be a world slump in wheat prices. ' “ This arrangement is of the greatest importance to ourselves and to our Canadian friends, said Mr Strachey. “It has an enormous bearing on our determination never to get back into the difficult position facing us to-day.” Mr Strachey added that the wheat would be paid for in Canadian dollars. No proportion of the American loan would be used. Australia Interested He said the Australian Government had not approached Britain for any similar agreement. The Australian Associated Press says Australian officials in London were kept informed of the progress of the negotiations leading to the agreement, which is regarded as of the highest importance to Australia. There is a certain amount of anxiety over the long-range implications of the arrangement which gives Canada a firm foothold on the British market at a time when Australia’s commitments for a short-haul policy preclude her from entering into contracts for supplying European countries. In Ottawa, the Trade Minister, Mr Mackinnon, announcing the agreement, said the price would be 135 cents a bushel for the first two years, and at a minimum price of 125 cents for the third year and one dollar for the fourth year.