PAYMENT FOR MEAT

Otago Daily Times, Issue 26692, 11 February 1948, Page 5

PAYMENT FOR MEAT

LUMP SUM PRINCIPLE AGREEMENT WITH ARGENTINA CURIOSITY AROUSED IN LONDON NZ.P.A.—Copyright Rec. 10 p.m. LONDON, Feb. 10. There is a great deal of curiosity in parliamentary and dominion circles in London about the terms of the AngloArgentine trade agreement following statements made in Buenos Aires that the prices that Britain will pay for Argentina meat will be more than appears on the surface, says the United Press. The Buenos Aire.s Standard says: “ Britain will maintain a steady flow of Argentina meat purchases, paying a definite 14 per cent, increase in price, but a formula has been devised whereby Argentina will actually receive 30 per cent, over current prices.” New Zealand and Australian representatives in London preferred to await full details —which are expected from the Chancelor of the Exchequer, Sir Stafford Cripps, in the House of Commons, probably on Thursday—before commenting, but a Treasury official revealed a possible explanation of any “ double price ” allegations. He confirmed that the mean price increase was about 14 per cent., “ plus the payment of a lump sum to. cover increased production costs. Ten million pounds is about right for this,” he continued. This lump sum principle was adopted as a short cut during the negotiations, and would apply to help cover the. cost of all Argentina exports to Britain, including meat. The lump sum principle, however, is regarded as a new one in national trade agreements. There is a great deal of curiosity about it, and Wing Commander Norman Hulbert, a leading Conservative critic of British bulk buying, may raise the question in the House Even so, he will not be told the actual prices that Britain is paying for the meat. Treasury officials said such a disclosure would jeopardise future negotiations. Since the New Zealand agreement with Britain permits yearly price reviews, the situation is obviously of considerable importance to New Zealand.