§ Mr. W. THORNEasked the Secretary of State for War if he is aware that the War Office arranged, through the Colonial Office, that the New Zealand Dominion Government should commandeer 15,000 tons of New Zealand cheese at a price which showed a saving of £250,000 against what it would have cost if they had bought in the open market; if he is aware that the War Office again, during July of this year, opened negotiations with the Dominion Government, who in turn approached the National Dairy Association of New Zealand, Limited, with the suggestion that the factories should sell the entire season's make of cheese to the Government; if he is aware that the Premier of New Zealand conducted the negotiations for the War Office; if he is aware that the New Zealand Dairy Association offered to sell all their cheese at 8¾d. per pound f.o.b. ocean steamer or or 91s. per cwt. l.i.f. London, but the Government refused the offer made; if he is aware that immediately this happened the English merchants commenced buying in New Zealand at 9¼d. per pound, and the price rapidly rose to 9½d., and more rapidly to 10d. and then 10½d; if he is aware that to-day New Zealand cheese is quoted at 120s., which means in round figures a loss of £1,000,000 on the total of 45,000 of New Zealand cheeses; and if he can state the reasons why the Government refused to purchase the cheese at the price of 8¾d. per pound askd by the New Zealand Dairy Association?
§ Mr. FORSTERThe figures given by the hon. Member with regard to last year's purchases are substantially correct. The price of 8¾d. offered by the New Zealand producers for the coming season's crop was so much in excess of last year's prices that the War Office did not feel justified in accepting it without further negotiation. A counter offer was therefore made. Negotiations are still in progress, and, pending their completion, it is impossible to say what, if any, loss may have been incurred by the non-acceptance of the original offer.