§ 26. Colonel J. R. H. Hutchisonasked the Minister of Food what quantities of maize and barley have been delivered to this country during 1948, and at what prices, under the trade agreement with the U.S.S.R.
§ Mr. StracheyUnder the Trade Agreement with the U.S.S.R. 187,239 long tons of maize and 430,530 long tons of barley have been delivered to the United Kingdom. The approximate c.i.f. cost was £32 14s. per ton for maize and £32 4s. per ton for barley.
§ Colonel HutchisonUnder the terms of the agreement was it not laid down that Britain should pay world prices for these grains, and during 1948 have not world prices for these grains, as shown by the Chicago market, been going down, whereas we have been paying increased prices; and does this not represent something like £4 million or £5 million of excess expenditure?
§ Mr. StracheyNo, Sir. The prices under the agreement were agreed at the time and were world prices.
§ Mr. BaldwinWill the Minister say what is meant by the term "long tons"? Is it the same kind of thing as a "baker's dozen" of 13?
§ Mr. StracheyIn these negotiations two units of tons are used: short tons and long tons. The long tons are the longer ones.
§ Viscount HinchingbrookeIs this not an example of the inadvisability of making long-term contracts in a period of falling world prices?
§ Colonel HutchisonArising out of the Ministers reply to my supplementary question, is the House to understand that 1616 the prices to be paid by this country do not follow world prices and are fixed merely by world prices operating at the time the agreement was made?
§ Mr. StracheyIt does not follow that other agreements are similar, but with this particular agreement the quantities were bought outright at a price which was fixed at the time of the agreement.