BIG BUTTER DEAL WITH BRITAIN

Dominion, Volume 11, Issue 25, 24 October 1917, Page 8

BIG BUTTER DEAL WITH BRITAIN

; 30,000 TONS OF AUSTRALIAN. It was announced by (ho Federal Primp Minister (Mr. Hughes) on October 8 that ho had completed arrangements ■for tlin salo to Great Britain of 30,000 ■tons of Australian bnttor for about -£4,530,000. In giving details of the contract, Mr. Hughes said that in July he asked the Secretary of State for the Colonies whether the British Government would purchase any portion of the Australian butter and cheese output during tho next twelve months. Later Mr. Hughes submitted a definite offer of the exportable surplus of butter, estimated at 30,000 tone, at U9s. 4d. per cwt. for first-grade butter, and one shilling less for c.noh point down, with a discount of 11 per cent., the payments to be roado on tho basis of ' in store" at tho usual .port of shipment within 14 days of butter being placed i;i eool store. Advice lias now lifeu received that this offer has been accepted with slight modifications. A cable mossage from Great Britain slates that the food Controller was prepared to buy during the period between Sentember, 1017, and June. 1918, up to 30,000 tons of butter at 151s. per cwt. f.o.b. for first-grade butter, and Is. less for each ' grade downwards. Payment would be. made against bills of lading, with interest-at G per cent, after It days in store, and interest would cease on amount so paid. All storage charges for sellers' account and all risks until delivery f.o.b. were to be borne by the seller. Mr. Hughes further explained that tho Government bad agreed to make advances for butter in store of Is. per lb., and of 7d. per lb. for cheese, with interest added. The machinery to give effect to this was now in operation, ,-tud the chief prices commissioner would supervise the matter.