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In this connection it should be observed that the quota would be a guaranteed minimum, and that it would be open to the Dominions to compete equally with foreign countries for the remainder of the supply apart from that reserved for United Kingdom wheat. 9. We have considered whether in any Dominion quota scheme separate quotas should be fixed for each of the wheat-exporting Dominions, but we have been informed that it would be administratively impracticable. 10. We have devoted a good deal of attention to the steps that it would be necessary to take in respect of imported flour. The imports of wheatmeal and flour into the United Kingdom average about 10,000,000 cwt. per annum, (if which about two-thirds come from British countries. It is clear that millers in the United Kingdom would have just cause for complaint if they were placed under the control involved in a quota system while flour could be imported as freely as it is to-day. The scheme which it is suggested might be applied to imported flour is outlined in paragraphs 4 and sof the annex to this report.* The general effect would be that the importer of Dominion flour would be required to take up his quota of United Kingdom wheat certificates, while the importer of foreign flour would also be required to take up his quota of Dominion wheat or wheat-flour certificates. Seeing that the imports of Dominion flour at present exceed considerably the imports of foreign flour, we do not consider that such a requirement would place any serious hardship on the importer of foreign flour. As regards imported Dominion wheat-flour, we have considered whether the obligation to acquire United Kingdom wheat certificates would interfere with the trade in special brands, but it was suggested to us that the importer would experience no undue difficulty in obtaining the necessary certificates, doing this probably in many cases through agents in the London Corn Exchange or in the country markets for United Kingdom wheat. The divergent interests of millers and of flour-importers would require to be protected in the framing of legislation which would be required to give effect to the plan, thus ensuring that no action would be taken to prejudice the important trade in Dominion flour. It would probably be desirable that the arrangements in connection with imported flour should be planned in consultation with the trade interests concerned. ANNEX. Outline of Plan for the Introduction of a Guaranteed Quota for Dominion Wheat on Milling in the United Kingdom. 1. The term " Dominion wheat " shall apply to wheat uiown in, and sent from, any part of the British Commonwealth outside the United Kingdom, and the term " Dominion wheat-flour " to flour milled entirely from " Dominion wheat " and sent from any part of the British Commonwealth outside the United Kingdom. 2. In connection with every parcel of Dominion wheat imported into the United Kingdom, a Dominion wheat certificate (or certificates, if it desired to subdivide the parcel) shall be issued by the Customs when they are satisfied, by the usual evidence tendered, that the wheat concerned is of Dominion origin. Similarly, in connection with every parcel of Dominion wheat-flour imported, a Dominion wheat-flour certificate would be issued by the Customs to the importer. 3. Quota as applied to Millers. —The quota would be reckoned as a percentage of the total amount of wheat used in mills, and the responsible Minister would require millers to produce evidence of purchase (including the surrender of Dominion wheat certificates issued by the Customs) of the prescribed minimum quota. (Millers would be under a similar obligation in regard to a United Kingdom quota.) 4. Quota as applied to Flour Importers. —(i) Imports of " Dominion wheat-flour " qualified to receive the Customs certificate will be subject only to the requirement as to surrender of United Kingdom wheat-quota certificates. (ii) Other Imported Flour. —An importer of any other wheat-flour will be required, before clearing such flour from Customs control, to produce and surrender to the Customs Dominion wheat or wheatflour certificates as issued by the Customs for an amount equivalent to the Dominion wheat quota. This flour — i.e., non-Dominion wheat-flour — will also be subject to the same requirement as Dominion wheat-flour in respect of the surrender to the Customs of United Kingdom wheat-quota certificates. • The responsible Minister would prescribe the equivalent of imported flour in terms of Dominion wheat certificates. 5. Flour Imports. —lt is to be understood that the Dominion wheat quota will be increased or reduced should imports of Dominion wheat-flour fall below or increase beyond a basic figure, the change in the quota being equivalent in terms of wheat to the change in the imports of flour, in accordance with the prescription of the responsible Minister.

* See below.

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