AGREEMENT REACHED

Evening Post, Volume CXVI, Issue 49, 26 August 1933, Page 13

AGREEMENT REACHED

LONDON'CONFERENCE

PRICE FIGURE SETTLED

LIMITATION OF SUPPLIES

(British Official Wireless.) (Received August 26, 11 a.m.) RUGBY, August 25. An agreement on the world price of wheat and on the limitation of supplies was reached today by the Wheat Conference in London, at which twenty-nine countries are represented. The Canadian Premier (Mr. R. B. Bennett), who is chairman of the Conference, announced that the exporting countries had accepted 32 gold francs per quintal (63.08 gold cents per bushel) as the price level at which importing nations may be asked to readjust the tariffs of wheat. The exporting countries had, he explained, desired a higher price, but, in view of representations made by other delegations, they were prepared to agree to this price. The Conference started on Monday, and is therefore one of the shortest international conferences on record. Preparatory talks were conducted^ in recent months at Geneva and during the World Economic Conference in London. The French delegate informed the Conference that his Government was prepared to give proof of their desire for agreement by accepting this price. The delegate from Germany spoke in similar terms. On behalf of Russia it was stated that the Soviet would sign, but with a reservation as to the limitation of exported wheat. The Danubian States intimated that they were in the same position as Russia. The exporting countries have agreed to limit their export of wheat during 1934 to 560,000,000 bushels, and, with the exception of Russia and the Danubian States, will reduce their production by -15 per cent. Tho agreement is to be in force for two years. There was a proposal from America that the price level question should be left over to be determined by the Wheat Advisory, Committee, which is being set up in London, and the Italian representatives also urged that the matter should be dealt with later, but their proposals were defeated. Britain and other producing countries which do not export will sign the agreement. > PARAQBAFH ADDED. The importing countries, in a paragraph to be added to the agreement, declare "that the measures affecting area of wheat grown and the degree of production adopted, are primarily dependent upon the domestic conditions within each country, and that any change in those measures must obtain the sanction of the legislature. The intention of this agreement is nevertheless that tha importing countries will not take advantage of the reduction of exports on the part of exporting countries by developing their domestic policies in such a way as to prejudice the efforts which the exporting countries are making in the common interest to restore the price of wheat to remunerative level." In regard to the figure of 63.08 gold cents per bushel, inserted in the final agreement, tho index figure for the week ending August 5 was on this calculation 55 gold cents, and it is now between 53 and 54. It will be seen, therefore, that the price is a rise of 10 gold cents approximately per bushel, and will be maintained at that figure for a period of four months before it will bo necessary for the importing countries to adjust their tariffs. Wheat prices advanced on Liverpool futures market when tho news of the agreement became known. The prices were }d to 7-8 d down at the opening, but rose to -id to Jd higher than yesterday's close.