ARGENTILE MEAT IS LIKELY TO COST BRITAIN MORE

Chronicle (Levin), 27 September 1949, Page 5

ARGENTILE MEAT IS LIKELY TO COST BRITAIN MORE

LONDON, Sept,. 26. A British official statenvent, upon the Argentile claims for an'increase in the price of meat as the result of devaluation. is still awaited but it is now admitted in London that a financial clause was inserted in the recent AngloArgentine trade pact wliich gives the Argentine Governiment some baeking for its claims. This clause provides that in the event of devaluation of the pound against the dollar, the British Government will make up the difference botween the. old and new Tates on anv sterling accumulated by the Argentine or to be received by it over the ensuing four months. It is understood that the Argentine sterling balances with the Bank of England at present nmonnt to about £25,000,000. TTnless the Argentine devalues the neso — whieh would necessitate the negotiation of new meat prices at the end of four months — the Argentine Government mav feel itself entitled to write up the value of these balances plus any nmounts duo for meat during the next four months, by 42 per cent whieh is the differenee between the new and old valno of sterling in terms of the Argentine peso. Britain is at present paving about 104d a ponnd for Argentine beef but if this is written up by 42 per ,.cent, tho prico will be in the vicinitv of Is 3d a pound. British financial circles consider there is some possibiliiy that tho Argentine may be forced to devalue the peso and so provide the opportunity for ^ the negotiation of completely now ! prices. It is reported in London, for instance, that the Argentine Government is endeavouring to negdtiate a loan for £60,000,000 from Britain to enable it to moot its sterling commitmenta.