HC Deb 22 December 1938 vol 342 cc3091-2
64. Mr. Hunloke

asked the President of the Board of Trade whether the question of exports of wheat and flour from the United States was discussed in the recent negotiations for a trade agreement?

Mr. Stanley

Yes, Sir. This question was discussed with the representatives of the United States Government during the recent trade negotiations, and they furnished our delegation with a general statement of their policy in this matter. As the statement is somewhat long, I propose to circulate it in the OFFICIAL REPORT.

Following is the statement: The United States Delegation informed the United Kingdom Delegation that they would have no objection to the publication of the following as a statement made during the course of the negotiations of the Trade Agreement: With reference to certain questions regarding the policy of the United States Government in relation to exports of wheat and flour which have been raised during the course of the negotiations of the Trade Agreement between the United States of America and the United Kingdom, signed this day, under which provision is made for the entry free of duty of wheat imported into the United Kingdom from the United States, the United States Delegation made the following statement: The policy of the United States Government in relation to exports of wheat and flour has been determined by the existing world wheat situation and influenced by governmental policies elsewhere affecting the production, export and import of wheat. It is recognised that the restoration of equal treatment for United States wheat on importation into the United Kingdom is an important step towards the re-establishment of more normal trading conditions in the world wheat market. At the same time the United States Government through its wheat acreage adjustment programme, which is intended to reduce the area of 81 million acres sown to wheat for harvest in 1938 to 55 million acres in 1939, is undertaking, independently, a significant and constructive contribution towards the solution of the world wheat problem. The United States Government has long held the view that the only sound way in which to find a solution of the problem of excess world wheat supplies is through international collaboration involving both wheat importing and wheat exporting countries. In view of its programme of acreage reduction combined with assistance to producers and in the absence of any international arrangement for dealing effectively with the problem of adjusting world export supplies to world import requirements, the United States Government has had to proceed independently with measures to assure that too burdensome a surplus will not be accumulated in the United States. This has necessitated a measure of governmental action in the export of wheat and compensatory assistance to exporters of flour. This policy is not designed to secure for United States wheat and flour a larger share of world import requirements than they enjoyed in previous years of normal wheat production in this country. Wheat is being marketed abroad through the regular trade channels in response to the demands of the markets. The scheme of assistance to exporters of flour is not intended to do more than compensate exporters for such prejudice as they might suffer from any differences between the prices of wheat within the United States and in export markets resulting from the scheme of assistance to exporters of wheat. While in view of rapid changes in the policies of other wheat exporting countries it is not possible for the United States Government to give definite assurances as to future policy in relation to exports of wheat and flour, it is confidently expected that this policy taken together with the programme of acreage adjustment already referred to will work in the direction of higher rather than lower prices in world markets.'