Evening star., 1933-08-25
WHEAT AGREEMENT
REACHED IN LONDON
Importing Nations Join Ex-
porters in Pact to Fix
Tariffs and Prices.
By the Associated Press.

By the Associated Press.
LONDON, August 25-The Interna-
tional Wheat Conference conquered
tariff and price difficulties today by ar
irving at final agreement which ties
In wheat importing nations with a
broad program designed to boost the
price of the grain by cutting produc-
ton and stimulating consumption.
The chief barrier to this agreement
had been the question of how high the
price Of wheat must go before the i'm
porters would lower their tariffs. This
problem was met by compromise.
The final decision was that tariffs
should be lowered when wheat remains
for four months at a price equivalent
to 6308 United States cents In gold
per buShel.
Equal to 80 Cents.
Calculated at the value of the Amer
3can dollar today compared with the
gold American dollar, this is equal to
80 cents a bushel. This quotation will
fiuctuate from day to day as the value
of the American dollar f1uctuates in
tIle tGl Ills VI lOl ClBIl SAllldLSS'
In terms of today's dollar rate.
the exporting nations had asked that
importers cut tariffs after wheat had
remained at 85 cents for four months.
Importers had argued for level be-
tween SO and SO centsO
When the conference started its at
tack on the wheat problem this week
the chief eXporters-the United States,
Canada, Australia and Argentina.
already had accepted the principle OF
reduced production. In order to make
this principle effective it was necessary
to make sure that. while they cut down
the number of acres sown, the i'm
porting countries did not neutralize
their efforts by encouraging the domes-
tic growing Of wheat
In todays understanding the import
ers agreed:
l. Not to encourage domestic produc-
tion.
. To do their utmost to increase con-
sumption.
3. To lower tariffs when wheat has
risen above the level established for that
purpose.
iting wheat imports.
General Policy Statement.
obeSNobN@
of new paragraph to the agreement,
which has been under discussion. This
paragraph would contain a declaration
of general policy. The confereeS eX-
pected to have it drawn up and ap-
proved in time for the signing of the
agreement this afternoon.
R. B. Bennett, prime minister of Can
ada. also announced that the exporting
countries would insert in the agreement
a provision that for the year l933-34
the export maximum allocated among
them should be 56O,000,0 900 bushels.
The provision also would stipulate
that for 1934-35 the exporting countries,
excepting Soviet Russia and the Danu-
bian nations, would undertake to reduce
production by Is per cent.
Mr.. Bennett said the exporting
countries would sign the agreement.
Russian representatives said their gov
ernment would sign, with a reservation
stipulating that the U. S. S. R., while
not agreeing to any acreage reduction
as had been agreed upon among other
exporting countries, would limit exports
to certain figures. These figures were
not given out.
The French delegate said he would
spare no effort to attempt to convince
his government to accept the figure Of
CSC cents gold per bushel as the level
for determining when tariff barriers will
be cut.
Signatures Later Today.
The additional paragraph in the
agreement, suggested by the importing
countries and submitted fo~ approval,
read thus:
The obligations of the importing
countries under this agreement are to
be interpreted in the light of the fol-
lowing declaration: 1t is recognized
that measures affecting the area Of
wheat grown and the degree of protec-
ton adopted should primarily depend
upon the domestic conditions within
each country, and that any change in
these measures must often require the
sanction of the Legislature.
The intention of this agreement is,
nevertheless, that the importing coun-
tries will not take advantage of a VOL
untary reduction of exports on the part
of the exporting countries by develop
ing their domestic policies in such {
way as to Illustrate the efforts which
the exporting countries are making In
the common interest to restore the price
OF wheat to remunerative level"
Mr.. Bennett proposed that the con-
ference proceed to draw up the final
document with this additional para
graph, plus an assertion of the gold
figure, SO that it might be signed this
afternoon by those who had made dec
larations that they would sign. Then
he suggested. certified copies of the
agreement should be deposited with the
League of Nations.
Among the countries who accepted
the gold figure were Germany and
Switzerland.
After signature the final document
will be sent to Geneva. The signatures
will stand unless withdrawn within a
certain limited period, which probably
will be fixed at "a hours.