THE PRINCIPAL FACTS

Chronicle (Levin), 4 July 1946, Page 8

THE PRINCIPAL FACTS

-Press Association

Rii Tclearavh—

WELLINGTON, July 3. "There still seems to be some misr appreliension on the subject of the sale of butter to the United States for the use of its armed forces in the Paeiiic," said Mr. Fraser in a statement tonight "The principal facts are: — "(I) The New Zealand Government is actually acting as the agent of the United Kingdom in supplying the order to the United States Army. "(2) The butter is the property of the British Government. Under the terms of the existing contract with Britain all butter surplus to domestic requirements, is already elfectivel}' sold to the British Governmenf and supplies can only be diverted on the direetion of that Government. " (3) When New Zealand was approaehed regarding tlie selling of 10,000,000 pounds to- the United States, tliese faets were pointed out to the autliorities in Washington and the British Governinent and Ministry of Food were innnediately consulted. "(4) The fact that butter is rationed in New Zealand to assist the food supply of the people of Britain, and that tlie voluntary rationing scheme has also operated with good results, was pointed out and empliasised to botli Governm'ents. So was the further fear

of tlie possible effect of the diversion on tlie amount of butter speci,lied in the food for Britain efforts here. "(5) The British Government, through the ^linistry of Food, with the full facts at its disposal, particularly in regard to the potential food supplies from the United States for the people of Britain, decided tliat tlie sale should be made on condition that an equivalent amount of comparable foodstuffs sucli as cheese, evaporated milk and other suitable fats, was provided for Britain in addition to quantities for vvliich contracts had already been plaeed in the United State^. "(6) The British Food Mission in Washington informed -the British Government it had secured agreemont con taining the foregoing conditions apd ensured the people of Britain they would not receive any less food as a result of the diversion. "(7) The United Kingdom then agrced to the sale of New Zealfind butter and we were informed accopdingly. "Those of us who feel very anxious as to the, effect of the diversion from the United Kingdom can rest assitred an equal amount oi' essential food from the United States will take its place. L hdve most complete faith and trust in the British Government. Mr. Attlee and his colleagues were elected to safeguard and promoto the welfare of the massos of the British people and they would not be parties to anvthing detrimental to the people. In matters such as that under diseussion and in other difficult matters inseparable from the postwar pcriod, I eonsider the New Zealand Government niust cooperate with them as closely as possible. It is also essential that our elose and friend ly association with the United States. which has meant so much to the people of both eountries in war, and which may mean even more in the future. niust be maintained. I have already annonnced that the price of the present consignment of butter is 44 cents and that of future consignments is to be determined. Tlie difference between tliat price and what is paid under the contract with the United Kingdom Government, will be paid to the latter. ' '