SUGAR SUPPLIES

Manawatu Standard, Volume LX, Issue 119, 18 April 1940, Page 8

SUGAR SUPPLIES

EMPIRE SCHEME. DOAIINION JOINS. Per Press Association. WELLINGTON, April 17. An announcement that the New Zealand Government had informed him that it had agreed to become a party to the British Empire scheme for the purchase and distribution of sugar, and had intimated its concurrence to the Government of the United Kingdom, was made by the Premier of Queensland (Air AV. Forgan Smith) in an interview to-day at the conclusion of negotiations in AVellington. Air Forgan Smith has now left on his return to Australia. “The chief reason for my visit to New Zealand,” said Air Forgan Smith, “was to discuss with the Government here the question of New Zealand becoming a party to the Empire scheme. The policy is based on the international agreement to which Australia is a party, arrived at in London in 1937. The policy now is that for the period of the war Great Britain shall, as far as possible, purchase her requirements of sugar within the Empire —that is, in the Dominions and Crown colonies where sugar cane is produced. It is handled by the Alinistry of Food, which diverts the sugar to wherever it is required. “Supplies for New Zealand, will in the main come from Queensland, and this Dominion will be assured of an adequate supply of sugar during the period of the war at a reasonable price. Queensland supplied a largo quantity of sugar for New Zealand last year by direct sale, and this is an extension of the arrangement made last year.” PRICE CONTROL. Air Forgan Smith said the agreement would be of advantage to the people of New Zealand in many ways. During the last war the price of sugar rose very steeply, and as high as £l9 a ton was paid where it was obtainable. Under the conditions now envisaged the price would be practically the same as at present, and people would have the advantage of .knowing they were using a product produced entirely by white labour under decent industrial conditions. All sugar in Queensland was grown and handled b.V union labour from planting to refinery and to the ships. So far as Queensland was concerned, tile agreement would mean an assured market near at hand for that quantity of sugar, and New Zealand would get the advantage of a lower freight rate compared with England. Another advantage of the arrangement was that it preserved sterling exchange. Mr Forgan Smith said ho had also conducted negotiations for the sale of more fresh Queensland pineapples and timber lo the Dominion, but these were not yet completed. Queensland had .supniied about 30,000 cases of pineapples to New Zealand last year.