HL Deb 25 July 1946 vol 142 cc998-1000

5.16 p.m.

VISCOUNT ADDISON

My Lords, I beg leave to interrupt our proceedings this afternoon in order to make an important statement of great public interest. A Contract has been signed between the Government of the United Kingdom and the Government of Canada for the purchase by the former of Canadian wheat over the four years beginning 1st August, 1946. The Agreement provides that the United Kingdom will purchase and the Canadian Government will supply the following quantities each year:

  • 1946–47–160 million bushels.
  • 1947–48–160 million bushels.
  • 1948–49–140 million bushels.
  • 1949–50–14o million bushels.
The Canadian Government have undertaken that in the event of good harvests larger quantities would be provided in the first two years. Part of the quantity of wheat, specified in the Contract will be Supplied in the form of flour to the following amounts:
  • 1946–47–500,000 tons.
  • 1947–48.—400,000 tons. In each of these two years there will be an additional quantity up to 140,000 tons, dependent upon the outturn of the crop.
  • 1948–49.—A minimum of 300,000 tons, actual tonnage to be negotiated by July I, 1947.
  • 1949–50.—A minimum of 300,000 tons, actual tonnage to be negotiated by July 1, 1948.
The price which the United Kingdom Government undertake to pay for the wheat supplied is as follows:
  • 1946–47.—a fixed price of $1.55 per bushel.
  • 1947–48.—a fixed price of $1.55 per bushel.
  • 1948–49.—a minimum price of $1.25 per bushel, the actual price to be negotiated by December 31, 1947.
  • 1949–50.—a minimum price of $1 per bushel, the actual price to be negotiated by December 31, 1948.
The contract provides that its terms and conditions shall be subject to any modifications or amendment which may be necessary to bring it into conformity with any international agreements or arrangements later concluded to which both Governments are parties. Nothing in the proposed wheat agreement will affect decisions which may be taken on the basis of recommendations of the International Emergency Food Council.

The Contract is based upon commercial considerations of mutual interest. It ensures to the United Kingdom substantial quantities of wheat during the expected period of shortage at prices below those which would be payable were there to be a free market at the present time. The price specified in the Contract for the first year is 30 per cent, below the current United States price and still more below the open market price in Argentina. This is the commercial advantage which the United Kingdom secures. In the later period of the Contract Canada receives the advantage of a guaranteed market and a minimum price. In determining the actual price in the last two years regard will be had to the extent to which the agreed price for the first two years falls below the world price for that period. Her farmers are, therefore, protected from crippling losses should there be a world slump in wheat prices. This is the commercial advantage which Canada secures.

VISCOUNT CRANBORNE

My Lords, I am sure that noble Lords on this side of the House will wish me to congratulate the Government upon the agreement which has been reached. It is, I think, yet another instance of that warm and fraternal friendship and sympathy of which we have had so many examples from the Government and people of Canada during the hard years through which we have recently passed. As the noble Viscount, the Leader of the House, has said, this agreement will be of mutual benefit to both countries and we very warmly welcome it.