uw ‘The Guarilian, Charlottetown, Tues., Sept. 22, 1959

~- European Wheat Mark et Future Seen Known By End Of This Year

By DON HANRIGHT “Canadian Press Staff Writer OTTAWA (‘(CP)—The future of

Canada’s wheat markets in the European Common Market area possibly will be Sees to a

* Trade authorities in Ottawa ex pect that around Jan. 1 the six member nations — France, Ger- many, Italy and the Benelux states—will announce and begin to consider their first specific proposals for creating a common agricultural policy.

The major outcome of such a Policy is foreseen here as @ marked increase in their farm preduction, the greater output being ‘needed to supply an ex- panded market resulting from the gradual reduction of tariffs and elimination of quotas.

There have been some indica- tions that the member nations envisage agricultural self-suffi- ciency within the Common Mar- ket—at least in the foodstuffs they! now are capable of produc-

ing: NEEDS SOME IMPORTS

In butter and cheese, the- area already is self-sufficient. But it still is a net importer of wheat, barley, corn and tobacco, and a so-called ‘“‘marginal importer” of beef, veal and pork.

Trade officials here say, how- ever, that self_- sufficiency ap- pears to be a distant goal, and that the Common Market will

continue as a large importer of |

food from “‘third countries” for Many years to come.

Of more immediate concern to Canada are the steps that will be taken to get this common agri- cultural trade rolling. This con cern lies in the fact that the Com- mon Markt area now ranks as the second biggest, importer of Canadian wheat.

For example, in the 1958-59 crop year ended July 31, Canada

shipped 54,900,000 -bushels of}

M | a appointed.

wheat to the Common aea—most of it to Germany, Bel- gium and The Netherlands. Thus, as a adian wheat market the area ranked second only to the United Kingdom,

where sales last year totalled |

100.600.000 bushels, and was! ehead of — which absorbed |

Renny eg

‘| annually—17 per cent of ali Cana-

{imports from other member coum

the

eda’s exports of all agricultural products to Common

Market

area averaged $168,000,000 worth

dian agricultural exports, Wheat

made up $112,000,000 of this aver-

ag, other grains $26,000,000. Even at -_— rate, Canada’s

was not a major one. In the 1954- 56 period the six countries, with agricultural purchases averaging $7,200,000,000, outstripped _ both the United Kingdom and United States in food imports.

What will happen to this vital Canadian market when the six nations merge their agricultural /o policies?

Establishment of the Common Market generally has been sup- ported with the impression that its attitude would be “outward” rather than “inward.’’ The mem-}. ber countries also have made clear that they intnd to ma tain trade relations with nations. ‘

Internally, however, ft is ex- pected that steps taken toward agricultural unification will pose a serious threat to internal prices.. To overcome this, the common market area p bly will impose minimum prices on

trises. WAY TO PROTECT

gradual reduction in tariffs and

elimination of quotas, would give each member country a way to protect its domestic producers if they—are in danger of being un- derpriced by imports from other | >

In effect, minimum prices

would simply replace tariffs. Also involved may be preferential long - term commodity arrange- ment already has been made be- tween Germany and France.

These are the plans on which

details are expected by the end

the year. And, until these de-

tails are announced, officials here say, it is impossible to determine how Canadian wheat exports to the area are likely to be affected in the future.

Meanwhile, a report by

Food and Agriculture Organiza- tion indicated that exporters of bread grain will. have to rely al- most entirely on population in- creases to maintain existing mar- kets within the Common Market area.

In a better position are the

Canadian exporters of feed grain. The six countries plan to step up their meat production and, in spite of planned crop increases, may have—to,continue importing as much or more feed for sev-

This; system, in spite of the eral years.

NoSofteningSeen In Soviet Attitude

visits to Washiiiten and New disarmament agreement but the

York is that he is having a propaganda success.

VOLUBLE SALESMAN

By JOHN M. HIGHTOWER

WASHINGTON (AP) — Nikita Khrushchev seems delighted with the results of his first few days in the United States. But U.S. of- ficials who have hoped for some softening of Soviet policy are dis-

The Soviet premier will hold three days of policy talks with President Eisenhower next week just before he flies home. Unless he produces some newer ap- proach to world problems than he has come up with so far, the conference at Camp David, Md., promises to be a barren affair.

Probably the reason for Khru- shchev’s evident pleasure in his

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Everybody is for total and uni- versal disarmament. But this

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system about : vague—was in fact one statement of the aim of 10 years of dis- armament negotiations. These negotiations have made one clear above all- others: of an arms reduction and con agreement between Russi the of system that would colabes | : Behind this central issue, im turn, lies the mistrust that Rus- sia and the Western bloc have | in each other’s pledged word. | But the Russians have a _ tre- mendous advantage here. Under | the Western system, with public | inquiry and debate and with a} free press, the Russians can have | reasonable - confidence in their

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