THE BUTTER SURPLUS.

Taranaki Daily News, 22 December 1921, Page 4

THE BUTTER SURPLUS.

DANGER OF PROPOSED SALE. MOVE TO DELAY ACTION. A MESSAGE TO BRITAIN. By Telegraph.—Press Association. Wellington, Last Night. < In the House this afternoon the Premier read the following memorandum sent by him to the Governor-General for transmission to the Imperial authorities: "The Prime Minister begs to advise Iris Excellency that he is in receipt of a cablegram from the High Commissioner, which discloses the position which has arisen in connexion with the stocks of New Zealand and Australian butter held by His Majesty’s Government, which will have a most serious effect upon the producers in New Zealand and upon the Dominion as a whole if the understood intention of His Majesty’s Government is given effect to at once. The High Cotamissioner advises that the Treasury has notified the Board of Trade that it must immediately realise the remaining stocks of butter, which amount to approximately 8000 tons of New Zealand butter and 14,000 tons of Austrahar butter. The Board of Trade is stated to be willing to sell all these stocks at an exceedingly low price, and if this sale is mad* and low-priced butter placed upon th» market it must have the effect of so depre ciating market values for all butter thab New Zealand producers will suffer most heavily. "The Prime Minister is in communication with the High Commissioner in the matter, and respectfully requests that His Excellency will cable the Right Hon. the Secretary of State for the Colonies, and request that action be delayed by the Board of Trade until the New Zealand Government can be enabled to go thoroughly into the matter. Hjs Excellency’s Ministers fully realise the position of His Majesty’s Government in holding these large stocks, and its desire to liquidate them, but the seriousness of the consequences which must follow if the proposals of His Majesty’s Government are at once given effect to is such that they feel it urgently necessary to request that sufficient time be. given to enable proposals for meeting the position to be considered.”