CANADIAN WHEAT FOR BRITAIN

Press, Volume LXXXII, Issue 24913, 28 June 1946, Page 7

CANADIAN WHEAT FOR BRITAIN

TALKS SUSPENDED

EXPLANATION GIVEN IN OTTAWA (N.Z. Press Association—Copyright) pm ;> OTTAWA, June 26. , c ?uadian Government sources the suspension of the BritishadSn “ a ? W ? eat talks arose from Can?djaa r ? lucta nce to make commitments i arge ' s ° al . e annual shipments, and renortSu 1 V nite l States opposition, as Canada was reluctant to tie “v?. , an agreement involving X,“ sales , so large that they might, J?* a u^ure short crop, n ? er .H* e Dominion’s position with other traditional customers. same time had in mint 2( ? ny Possible agreeUnited States wheat interests, ana the possible American reaction 1° a long-term contract. The quantities of grain proposed unaer the contract are believed to be about 150,000,000 bushels annually for fiftonnnJtn R Ve u^ ears ’ com P a red with Pr?+°P- ,000 R bushels a year exported to Britain before the war. „ The Associated Press said: “A proposed long-term wheat agreement between Canada and Britain foundered on the rocks of United States opposition in what is regarded as an important test case of the post-war international trade structure. It is understood that the British and Canadians were about to sign the agreement, under which Britain would buy Canadian wheat at 125 Canadian cents a bushel, whereas the current Canadian price is 155 cents, compared with the American price of 200 Canadian cents (or 180 American cents). Hence the proposed contract would be for little more than half the American price.” “A good seven days’ work —certainly strenuous,” was the description of his mission to Canada and America given by the British Minister of Food (Mr John Strachey) on his return to London.

Mr Strachey said he had been able to present Britain’s case for wheat and other food supplies to the International Food Council. “It is absolutely vital that we should play our part in that from the beginning,” he said. The Minister said he had had conversations in Ottawa aimed at a re-

newed agreement on wheat supplies for Britain. He did not doubt that a wheat agreement with Canada would be made. Mr Sttachey said that if bread were rationed in Britain it would not mean betjer bread, as the high extraction rate would be maintained. There was no immediate relief for Britain’s food, plight, but there was some hope ol increased variety by the winter. Fruit would be the main .item. Others would be dried eggs and possibly some canned goods. The brightest prospect was the improved outlook for the Canadian and American wheat crops. Certain United States Government officials, who asked not to be named, referring to Mr Strachey’s failure to obtain a wheat agreement with Canada, said that the United States opposed a British and Canadian 10year agreement because it was regarded as inconsistent with United States multilateral trade policies. The United States officials mentioned that the proposed British loan agreement provided for a revisiop of Britain’s Empire trade agreement.

An official at the British Embassy in Washington said that the price factor entered into the American opposition to a wheat agreement because it provided for sales of Canadian wheat to Britain at prices well below the prevailing United States rate. The British official believed that negotiations on the wheat deal would be dropped temporarily pending consideration of another plan that might overcome American objections.