Political Aspects

Press, Volume CV, Issue 30977, 5 February 1966, Page 1

Political Aspects

Britain’s giant dairy food distributors, A. J. Mills and Company, warned that politics may become increasingly involved in imports of butter from Commonwealth countries—especially Australia and New Zealand, according to a cable message from London.

It said big imparts from Australia and New Zealand would build up stocks to something like 75,000 tons—compared to a normal “comfortable” stock of 45,000 tons —at the beginning of the new quota year on April one. The British Government’s new quotas may be “governed more than in the past by varying political undertones,

the company said in its quarterly review on dairy produce. So far the Government had steered a “statesmanlike course” between its obligations to Commonwealth producers, particularly those in New Zealand, and the need to encourage British exports to all countries —some of whom find butter one of their best means erf earning sterling. On the other hand the

Government might want to use the surplus butter position to reduce prices to home consumers—thus giving a boost to its “admittedly difficult prices and incomes policy.” Mr A. J. Mills said.

If the Government decided to allow only “basic” import quotas of butter on April one it might decide to re-allocate them taking into account each exporting country’s actual performance over the last three years.