Evening star., 1947-05-25
WheatRules
Facing Test
Regulatory Program
May Be Boon to
Millions
By Sigrid Arne

The peace machinery is about to
get its first basic economic test in
o wheat program which is nearing
agreement among more than 20 ma
tions. I
The subject sounds dry. But it
can mean better living for millions
around the world-for farmers and
for the millions to whom the price
of bread can mean the difference
between hunger and enough to eat.
The men who are writing the
world wheat program are driving to-
ward three goals: ID To fix floor
and ceiling prices for wheat, 90 to
zee that the world produces neither
more nor less wheat than it needs,
(3) to see that areas of recurring
famine get bread.
Must Agree on Top Price.
Wheat talks have been going on
since the sos, when American farm
ers faced bankruptcy because
United States wheat dropped to IS
cents a bushel. 1t Is now around
$3.50, but it is expected to drop when
the war-wrecked nations get back
to prewar production. The trick
will be to stop the drop before 1t
goes too far.
For the nations which buy wheat
--21 of them have been attending
the wheat talks-the immediate job
is to get agreement on top price
they can afford to pay.
The talks have been going on In
the International Wheat Council,
which includes most of the wheat
buying and selling nations. In
March and April there was a world
wheat conference in London which
carried the plans further They're
back in the council now for refine
ment.
Main Proposals.
The talks started with plan
written by the United Nations Food
and Agriculture Organization. That
proposed most Importantly:
l. Prices to range between $1.16
and s155.
2. Limits to be placed on export
wheat when prices fall to ITO per
cent of the agreed floor price. Then
the four exporting nations would
be held TO the following percent
ages of the wheat sold in world
trade-Uuited States, 16 per cent;
Australia, 10 per cent; Argentina, rs
per cent; Canada, 40 per cent.
3. Exporting nations would be per-
mitted to sell below the agreed floor
price to the nations which have re-
curing famines, providing the gov
ernments pass on the lower price to
the people.
Arguments at London brought out
perfectly the tremendous obstacles
which must be overcome before
freedom from want" can be met.
Many United Nations delegates
have said no political agreements
can stick unless such economic
problems as this one can be ironcd
out.
The Big Differences.
Here were some of the main diff
ferences;
/. At the start of the talks the
United States insisted on five
year agreement, with a top price
of not less than $180 which would
stand for two years. 1t would agree
to being limited to 16 per cent of
the first 45o,OO0,OO0 bushels which
moved in world trade. Then it
wanted a larger share. In the late
'3Os about 45O,0O0,000 bushels moved
in world trade.
2. The United Kingdom, which
buys wheat, wanted three-year top
price of $155.
3. Canada wanted a price range
of $125 to $1.55, which would be
set for only an initial quantity of
wheat in trade After that the
rest would be sold at whatever price
was possible.
4. Australia generally supports the
United States.
S. Argentina (the fourth big ex-
porter of wheat refused to join
any plan.
Price Quarrel Ended Session.
To get around Argentinas lone
wolf stand, the British proposed
that the buying nations guarantee
yearly purchases of about 80 per
cent of their needs at no less than
an agreed floor price. The three
cooperating exporters. (the United
States, Canada and AuStralia) to-
sell like amount at no more than
an agreed ceiling price.
That move would cut Argentina
off from most of her markets once