FOOD FOR BRITAIN

Otago Daily Times, Issue 26227, 10 August 1946, Page 7

FOOD FOR BRITAIN

RECENT AGREEMENTS TWO POLICIES ADOPTED (N.Z.P.A. Special Correspondent) (Rec. 0.45 a.m.) LONDON, Aug. 9. Britain has adopted two poliaes in securing food supplies from abroad-long-term and short-term. Her longterm policy applies chiefly tq contracts with empire countries, as for example the bulk purchase agreements with Australia and New Zealand, and the wheat agreement with Canada. Britain’s short-term policy is being applied to countries like Denmark and Argentina, with whom she has to negotiate to secure extra food which is not available, in the empire and which she requires to maintain her rations. In her agreements with Australia and New Zealand Britain agreed to take’the whole of their exportable surpluses over a period of years at prices which will be subject to annual review. With Canada she agreed to take a stipulated quantity of wheat at a stated minimum price for the next three years. It •' is understood that Britain was also willing to guarantee minimum prices to Australia and New Zealand for their produce during the period ' of the contracts, but these dominions preferred to have them reviewed annually. Committed to Bulk Purchasing

The British Labour Government is committed to the idea of bulk purchasing from the dominions during its period of office. The Government welcomes it as a system of planned economy. If it is returned at the elections in 1950—when the present contracts with New Zealand expire—there is every reason to believe that it will desire to continue this system. It is understood that if New Zealand wishes it the British Government would be fully prepared now to contemplate an extension of the" agreements beyond 1950.

In making agreements with Denmark and Argentina, Britain is pursuing the short-term policy of buying what food she can under conditions of scarcity. She dislikes the necessity of having to pay higher prices to these countries than to the dominions. But she has no intention of regarding them as minimum prices and intends to secure a reduction as soon as general conditions permit. The Danish Agreement

Contrary to reports, Britain definitely has not agreed to pay firm minimum prices to Denmark. While her contract to buy Danish butter extends at present to September, 1947, the price of £ll per cwt is subject to review next April if this is desired by either country. The price will again be subject to review in September of next year, and if Britain can negotiate a lower price she is certainly going to do so and the result may be that the Danes will receive a price for their butter equal to or lower than New Zealand’s. Britain made it plain that she appreciates the Dominion’s acceptance of prices lower than those paid to foreign countries to-day and the inference is that sbe will remember these actions to the advantage of the dominions when world conditions are changed. Countries like Argentina, now driving hard bargains, will find their actions also remembered, but in a different light.