ARGENTINE “POKER"; WANTS BRITAIN TO PAY MORE FOR MEAT

Wanganui Chronicle, 5 October 1949, Page 5

ARGENTINE “POKER"; WANTS BRITAIN TO PAY MORE FOR MEAT

LONDON, Oct. 4 (Recd. 6 pm.)— Argentina’s ban on imports announced in Buenos Aires yesterday is recognised in Whitehall as another move in the “poker game" to force Britain to pay more for meat, says the “Daily Mail.” Until Sir Stafford Cripps has examined the situation no instructions will be sent to the British Ambassador. It is recognised the Argentine Government is anxious to compel Britain to enter into new talks, but it is reiterated that Britain will not be blackmailed.

Argentina yesterday reduced some of her exchange rates by 46 per cent. The new rates apply to transfer of money for travellers, profits and certain services. The effect was to make the dollar bring 84.6 per cent, more in pesos. The rate was fixed at»nine cents to the dollar compared with the old rate of 4.875 pesos. The peso was devalued to 25.2 to the British £ instead of the old rate of 19.37.

Argentina also suspended all imports, at least temporarily. The Central Bank put into effect the reshuffled exchange rates. It also issued a list of items which can be imported but said the method of applying for import permits will be announced later. There is no immediate indication of when this would be done.

The new schedule of exchange rates requires Britain and other countries which cheapened their currency to pay more for what they buy in Argentina. In some cases they give more pesos for dollar purchases which make prices cheaper for those who can pay with dollars. . The new exchange rates announced are “free” market rates. The Government froze the prices of prime necessities to all Argentine households, according to schedules announced today by the Central Bank. The old rate paid by Britain for meat will not be altered. The price for 1949 was fixed in sterling at £97,536 a long ton. The price for 1950 however, will be subject to negotiation which it was agreed should be conducted if sterling were devalued. The meat price for 1949 was the only one fixed during the British Argentine trade negotiations. The price paid by Britain for other food or feeding stuffs will presumably cost more, depending on the exchange rate adopted for the particular commodity.