Evening star., 1949-06-12

BY the announcement OF o f1ve'
year British-Argentine bilatera
trade agreement. The pact
Il, In effect. o mere barter agree.
ment. The British are to get more
than 800, 900 TONS Of meat . year
as well On other Argentine food
products. In return for British oil
coal. heavy machinery. textiles
and commodities normally sup
piled BY this country.
In fact, the agreement has
raised such O storm Of criticism
on the part Of United States bust
nessmen with millions Of dollars
tied up In Argentine investments
and trade. that Washington has
called the matter to the attention
Of the British government and
registered disapproval.
At any rate, the State Depart
ment has been informed by Ar
gentine Ambassador Jeronimc
Remorino that O portion Of the
government trade monopoly
known as IAPI, or the Argentine
Institute for the Promotion oi
Trade, has already been scrappec
and O considerable block of the
export and import business handed
back 10 private companies.
Ambassador Remorino has an
nounced that virtually free trade
~ to be re-established between
Argentina and the United States. u
He says that restrictions on the
importation Of agricultural ma
ehinery, normally one of our most
profitable exports to the pampa
country. have been abolished and
o sizeable amount Of dollar ex-
change earmarked for the imme-
diats purchase Of large quantities
Of such materials.
Promise to Packers
We are also told that the ex-
port tax or commission on canned
beef. ordinarily one Of our prin-
cipal imports from Argentina. has
been lifted. Similar steps are to
bs taken to reduce restrictions
and to lower prices on carpet wool,
tanning materials and other
products which we formerly
bought from the South American
nation In large quantities. More
important still. 20 per cent Of the
dollar exchange. accruing from
future sales Of Argentine products
to this country. is to be set aside
to reimburse United States ex-
porters for some 5000, ,000. 900
worth Of goods already shipped
to Argentina and not yet paid for.
Some creditors report they have
already received small amounts
on certain Of these back debts.
Naturally any substantial pay
ments will depend entirely upon
the increase In exports to this
country. and, Of course. the good
faith of the Buenos Aires officials
to carry out the new policy as re-
ported by the Ambassador.
A promise Of financial assistance
has been made to the giant Swift.
Armour and other United States
owned packing companies by which
they may at least be able to remain
In business. Most Of them have
been on the verge Of closing down
because they were operating at .
loss, due to continually increasing
wages and numerous Government
export taxes and commissions on
packing house products.
Worse still, interference with
local company has all but wrecked
the great livestock industry. First
of all, the Government. through
IAPI, fixed the prices the packers
could pay the producers for their
cattle. sheep and hogs, as well as
the prices the packers could charge
for exports to this or any other
country, except the United King
dom. Exports Of meat to Great
Britain have been covered by spe-
cial. long-term agreements d.
rectly between the two govern
ments.
At the same time the ranchers
were compelled to pay higher
taxes, higher freight rates on the
government-operated railways and
increase wages to their workers.
Profits and income to the local
ranchers slumped until finally they
could no longer afford to sell at
the arbitrary prices fixed by the
government.
Fewer animals resulted In lower
output by the packing plants. For
more than o year the companies
have been operating at about so
per cent and even as low as 40 per
cent Of capacity.
The governments labor policies
of ordering higher and higher
wages to workers in the plants.
without giving any consideration
to the cost Of production, put the
packers In the red.
Markets Dried Up
Ordinarily the United States
buys the bulk Of Argentine canned
beef. In the last three years ex-
ports to this country had prac-
tically ceased. The same was true
Of wool. and the linseed or flax
seed market has been lost forever.
While the Argentine trade monop-
oily tried to hold UP buyers Of
linseed oil In the United States
by demanding exorbitant prices,
our farmers in the Northwest not
only began 10 produce more. but
the Government even provided a
subsidy.
Argentina's wheat markets In
Europe have for the time being
been practically wiped out. For
two years following the war
European nations, and even Brazil
and other South American coun-
tries, which normally buy their
wheat supply from Argentina,
were compelled to pay consid-