1953-09-30 — Page 91

Japan Wants To Buy U.S. Wheat

Tokyo, Supt. 20.

The Japanes Government, i

b reported, has riarted negoйla- Slates tions with the United Government for the purchase of $20 million worth of surplus

with and

American whoat Mutual Security Agency

Talks are being held through the Japanese Embassy aa

Washington and are said to be based on Prime: Minister Yoshida's instructions.

Foreign Ofco eirelés said the proposed import will be made it the various conditions set by Japan for the purchase are accepted..

Japan wishes to buy wheat At n price cheap enough to eliminate the need of payment of any import subsidy by the accord- Japanese Government, ing to informants here.

America's surplus the Mutual Security Ach,

Japan also hopes, to be allow- The meeting

followed

ed certain freedom to specify Con- Secondly, the support which a holt has been called around Farm plaints by an American

the quality of wheat It la significant that

America's special considera Bureau Federation spokesman

The Japanese delegation would recently by Japanese purchases fall in sterling sens, to have Administration that the

tion is niso desired in building had very little effect on the foot' dragging its

on the pro- probably be 12 strong, some of has been withdrawn.

op Thirdly, the market is Sohyefect

now London gilt-edged market.

Japan's foreign exchange rom whlet Congress them members of the Kramme

the backwash of the

serves by not using yen funds Union Federation. Pro-

Nevertheless a movement of

for Trade

offshore

In authorised last July,

of

procurements forward sterling this kind can never be ignored, committees for the paratory

of whatever 1ts Cruses, Any

that had been set up in lavi spring when the idea

Japan. It is also deafred The Law authorised the Ad-Congress

was very much sudden

Japanese ships be used to carry country convertiblity

change in sterling in- ministration to sell up to $250,- several

American wheat to Japan 000,000 worth of surplus farm which collected funds to finance in the air; many people thought evitably raises questions about long-term outlook. And

whenever possible. to foreign countries.the delegates' journey to Vienna, sterling would appreciate then the

and bought forward.

According to Article 550 of once these questions have been. United PreER

do Finally, the recent extension raised, they not answer of the time limits for short themselves.

wheat is to term Anarce hus naturally On the whole there seemy

Agreement on Tariffs and Trade be offered to friendly nations on demand for title

alter the

for

the basis of the domesile market roview opinion that the market itself which is coming up

price. session of all

the present has been registering

during the

algnatories in Geneva. summer.

The outlook Is reasonably as well as all the big

gold and good. The

dollar nations of the world except Ger-

Rusala been rising, not

many, Japan, satellites, are signatories to this agreement, which improving International trade.

The Canadian Government is have the purchase price CX- being badgered by textiles manu-ceptionally reduced to about $80 the equivalent dollar Lecturers and others for netion per ton, or

to the Japanese market price.

Possible Effect

Of Setback In Business In U.S.

By Sydney S. Gampell Reuter's Financial Editor

In the last resort, a setback in U.S. business would raise the question of exchange rates - at least the question of wider fluctuations if not of devaluations. Surprisingly, the International Monetary Fund, writing apparently in July when there was hardly a cloud on the horizon, mention- ed that the appropriate internal measures may sometimes have to be supplemented by "exchange depreciation.”

weakened the webk

sterling.

experienced The market has

effect to exactly the opposite that produced after Mr Butler's these time first Budget, when limits were reduced.

All the causes of the recent weakness of sterling have, in fact, опе thing. in common. They are not likely to operate over any great length of time.

Already there are signs that

HONGKONG

SHARE MARKET

(From Our Correspondant} Business done on the Stock Exchange this morning amount- ed to $848,313. Noon quotations and the morning's transactions:--

to reason

has resorve

only because of an improve ment in the dollar balances of the outer sterling area but also because

even more

marked improvement in the United Kingdom's own Irade.

NO REASON

During the last year or so in fact the improvement has been greater than is perhaps ulways realised,

since

the

For the Arrt time war the sterling aren carned a steady surplus of dollars at a time when prices generally have been falling.

And this has meant that the value of the reserve has been rising even faster than Its volume,"

great

Provided there is no change in the general leval of world production and world trade, there seems no reason

It seemed queer to see the IMF even guarded-SHARES DUYERS SELLERS SALES why this steady rise should not

BANKS

IK Dank

ly and contingently mentioning devaluation. Per- haps it was thinking of France. Even with the clouds that have since gathered on the western horizon, it seems out of the question for sterling INSURANCES which, at its present exchange rate, is not over- valued but greatly under-valued.

As

for

ог

affecting the

•

may be common prospects words which

hot enough in Dr Erhardt's Ger-

but are seldom In Chancellor

movements of money, other, it is relevant

sterling is under-valued

that many

in oven

prices of securities as well as Britain.

One reason in prices of goods.

Exchange why London bas held strong in the face of

Stock

the Babilitles too large.

The western storm,

10

to

In

n

heard Buller's

them 342 fraction of

whereas any

Π

the

resented by Rative opinion for many years to come to short-term money, by people throughout the country.

THE

which

East Asia

Union Underwriter

HK Fire... DOCKS. ETC. K. Whart Dock

Provident

150

626 630

3%

100

0314

continue.

Though defence old will fall 20 1020 41 1520 away in the next months, pay-

offshore 5 1520 ment for the

orders that have already been placed in Europe will soon

its take place.

56

0715

run

counter to the

Сепета!

But since the American price Conovel is for higher than the Japanese, it will be necessary for the Japanese Government to

and her

is aimed at

give a subsidy to factillate the purchase.

Therefore, Japan wishes to

against the alleged "dumping" but is very reluctant to lake China Mail Special, any action.

is regarding

the

rather ferful is

by

the

progress

some of the being made protective tariffs factions in the United States and I is felt here that to take restrictive action against United States Imporis at this time would only put new weapons in their hands.

serve to

NEW DEFINITION

Russians Selling Precious Metals

New York, Sept. 29. For the Brst time since the end of World War II the Soviet

The Canadian Parliament under the agreement eliminated the 1948 Customs Act definition of"dumping" ns involcing goods for

to Canada at less export than their production costs.

Instead, the 1951 Customs Act defines dumping as fixing the value of the goods at less than the "fair market value" in the Union has been selling large quantities of its precious metals country of origin.

The

primary textile in the free world markets, ac- Canadian

of group claims that 3,000 workers cording to the October issue In Canada have lost their jobs "Pick's World Currency Report." the cotton and Recent sales Included an WORLD TRADE

since 1951 in

ounces of estimated 20,000,000 synthetic Abre flalds alone. Looking back, it can now be The Textile Workers' Union is silver totalling about US$16,800,- 22 100 23

the manu-000, 250,000 ounces of gold worth 500 21.00 seen that sicrling has strength- also lined up with

80,000 that in the about 13.30 600 13.30 ened

facturers, declarails and plants ounces FO much that, without

$3,200,000, und IN 12 12.30

ΟΙ 729 Canadian

platinum totalling external assistance, it has been 2.15 Shal Dock

about $7,200,000, it said. Wheelock 8.65 0.93 1290 6.93 possible to make it much more

Available 8.90 widely

for The 8.10 Binance of international trade,

The British Government has 04

been able to press forward with 1814 10.90 250 17

its

of freeing programme 000

This in 1000 16.80 commodity markets.

500 16.70 Itself is an encouraging and 1500 e 25.90 important by-product of inter-

nal stability. C. Light (0) 11.00 13.90 1000 14

There are, however, two un- 1400 13.90

questions hanging 3.89 answered

future; and these, the 1000 28.10 over GOGO 28 now that a fall has taken place,

100 or 20.10

casily

sterling may

prevent Macao Elec Telephone 22.00 22.80 1700 22.20 returning to the upper limit of at least INDUSTRIALS

permissible dealings, Coment

10 100 18.80 for the moment. STORES, ETC.

Dalry

2500 423,50

LAND, ETC

100000

HIK Hetel B 8.15 500 HK Land XD 31564 146 1.50

Shal Land

Humphreys

UTILITIES

Tram

Star Ferry

132

C. Light (N) 0.63 9.05 1500

Electric

EWO

-

25

10.70

***.... 2.40 Textile Corp. 5.50 MISCELLANEOUS

Yangleze

(N) 0%

3000 8.00

Grain Prices sterling area

In Chicago

on

in

that direct

of these precious

storting rate,

are

load,

of the primary textile industry, statistiest shoreased from 101,234-metals deals, olightly mort us 1951 to 93,120 in £9,000,000 sterling at the trans- In Jani

January

ferable January 1933.

It is also claimed that many destined to

im thousands of those still employed ports have to accept part-lime work and are laced with other drastic cuts in the near future unless

Government takes the oction to halt the flood of United States Imports.

CLOSE WATCH

During

БОТС

copper,

pay for Ruslan of Australian Malayan tin and Rhodeslan

all from sterling arons," said the publication.

Platinum sales were handled by a British-Swiss consortium, metali with part of the "grey

found its way already having into the United States, it was

made

the recent

election sald

Silver Fales were Chevrler, campaign, Mr Lionel Minister of Transport in the St directly to Great Britain, who Laurent Cabinet, who represents in barn sold 1,250,000 ounces to

the Royal Mint in Bruscis. the textile-producing city

Most of the remaining silver Cornwall, Ontario, was quoted as

acquired by Britain is "believed" saying that the salvation of the to have been nepaid to the Canadian the anti-dumping shipments of

textile industry lay in United a revision of laws. Mr C. D. Howe, Minister

Commerce, also Britain during World War II. of Trade and said that the dumping situation it added.

The publisher of the report is would be corrected but that the

Franz

Pick, economist and com- fundamental problem went

sullent to foreign countries.-- deeper than that.

United Prosa.

States for lend-lease the inetal to

Indian

Tribute

To MRA

NOT A WORRY

recession, or perhaps Wall Street's weakness is that even in no more than a technica! British industrial equities at Wall Street setback, funding la U.S. one thing that the cent above their 1935 the 25 per

in Treasury need not worry about. the change average while

Admittedly, 11g cfforts ta the value of money since 1035 | Ad

U.S. national debt has sent general prices to more lengthen the

On so far been a joke. Ike 250 per cent obove their have July

maluritics of 1,952, 1. about 1035 average are

orld.marketable securities within one cheapest assets in the world. Sterling's troubles are not that year amounted to $45 billion.

On

after July

!, 1053, Capetown, Sept. 29.

it is denr elther In goods

determined Republican drive to The South African House of

in fcrip. They are that lengthen the debt, the one-year

The first of these is bound Assembly (Lower House) to-

British economy is too rigid; narketable maturities amounted

11002370 up with the outlook for the 05 day passed the third reading of the reserves are too small; and to $64 billion-and even

2000 23,60 American economy. In spite of Watson ... 24.10 24.60 2000 - £1.30 a bill to transfer control of nn-

904420 the behaviour of Wall Street, a tive education from the provin-

recent operation only pushes u

L. Crawford 13.00

of opinion strong body of the Union to

year COTTONS

once America seems clal councila

If there forward

again real the Minister of Native Affairs.

is to be one, would blow along funding ought to

inclined to postpone the The United

put them off (opposition)

which cession

everyone has the line of least resistance amendment Party

for at least five years. But any moved an

inflation. The IMF seems

1300 is 0.03 been expecting. fool can fund in a slump money during the committee stage that

But is it right?. modern civilisation 100i car

And if it is think that native education be placed under

on becomes unemployed and asks

wrong what would be the effect prone to nothing better than any kind of constitutionally

the the control of the Department is

of such a recession "In

the

dollar Education and not the Deport- Inflation.

modernoant the Treasury will

balance It says,

"there are *** world," ment of Native Affairs,

let it have. Even In something

and on the reserves? both

Many Members of Parliament economic Opposition speakers said the

many forces,

much short of a slump, tha

of some have textile plants Education BI Bantu

and social. that seem

REALISM NEEDED likely

offered 40 Treasury is

much

kind or other in their conati- What has undoubtedly tuencies and are anxious about foster a climate of opinion in who want a temporary home for

sustained

-situation back world trade in the the employment Minister of Native

it will always be easy that it can afford to forget

Chicago, Sept. 29. last few months has been the home. But the Government is Inflationary about funding. Verwoerd, Dr H. F. Affairs,

to generate new

not in the least bit anxious to of production Prices of grain futures closed very high level forces." to the debate,' said

As Lo policy in the 16-18% replyftug

In practice, in a slump, the today as follows:

rock the boat when there cou in America.

could the late event of a recession, 181-18s that by representing the bill as

U.S. would be forced into more

Wheat-[No. 2 red. per bushel in Secondly, it is now clear that be such resounding the United Caux-sur-Montreux, Sept. 20. 18-10

Lord Keynes said that 181-191 an oppressive measure the op-

the Keynesianism than any other centa)

Indin's Minister of Commerce, the likelihood of the sterling slons, not only. gone when

Spot 10-101

100 position had sown suspicion in days have

country-regardless of Republic-

Dec. 19816(H) 30435432) 1943-L areas receiving help from the

States, but in the whole fold Mr D. P. Karmarkar, addressed be the native mind.

country can

expect-

an doctrine or of Congress's March 1934

governed by the American Administration, either of trade as. ed to iry to make The Government, he added,

the rather preposterous celling,

Taritis on General Agreement internal level of employment,

by "trade, not aid" or moro public was convinced that the bill was

the

debt. It has been

Trado. prices fluctuate

Corn (No. 2, yellow, per bushel directly by a loan, is no longer and the right thing in the interest

wages and

that a

a quite moderate in Lockoned

immediate The meetings at Geneva are uround one of

wildly

the external

samathing for the native education and of

future.

being closely watched by official South Africa. Reuter.

value of its currency instead of retosalon might throw up a US budget defelt of $23 billion.

With the best will In the the other way round. The IMF That would be more "Inflation"

In- fower restrictions an

Mr Karmarisor is leading his Annual Report, says much the than any other country would

world nothing can be

delegation to until the autumn of 1954 If ternational trade silhough at the same thing, less elegantly.

country's Dec. have, and in the end the dollar

moment

under heavy It 15

of the Tarif March 1931

110

then.

restore one of the eighth session

13 Gall==(Prices per bushei în centr)

Conference which the pressure to reassessment With

now in MARKET

The canger for the non-dollar might in fast fare worse than

large Industries any other major currency. The

Dre, currencies in

situation will the sterling area country's very would la · what

March 1954"** uncertainty

2014

Mr Karmarkar thanked D under a Republican Administra- | uncu London, Sept. 29.

Boybeans-Prices per bushel in countries make in the light of to health by tariff-juggling.session in Geneva. happen first, if Britain, for

China Mail Special..

Buchman, initiator of Moral this knowledge? What plans are The tin market who firm but tion, might be for less Keynes example, were trying to soften,

recent his 258 mom they laying to keep the

Rearmargent, for quiet. Turnover was 23 tons of Ian then some other countries. the impact of, a recession

200-30012 by

visit to India at the head of a which five tour were for each.

rising over the next year? U.S..

Republicans, softening money, while the U.S.

Mail Clilna These are questions which tho Closing prices were as follows: Keynesian is a term of abuse, was still trying to be tough,

Special Commonwealth Finance Con- Spot, un, buyers

Alarmed by the possibilities of even it in vetreat. Republican

ference will have to dlacuse and. a recession and of its political doctrine and the public debi

If possible settle when it meets Trasury repercussions, .......U.S.

Humphrey

andulang militato strongly against

early next year-that is, if it is Secretary

any

Voluntary early or

granted the further breathing- Deputy Secretary Burgess have resort to

New York space to do so.

Montreal run away from their funding policy (begging the question

to be whether which is now

'Since the strength of sterling, Ainaterdaen. policy

recipes -these- Moscow, Sept. 29.

would

Business was done in the lost depends on confidence a much bruses on

market The All-India Fine Arta and applied only "gradually and at smoothing the trade cycle

fact work if they were unmolal szehang

this 'aa on actual movements of trado Orafts Society exhibition, which opportune times" But they are

moming at the following ratenin Whatever might be dolar (por

and of money, much will depend | Copenhagen "sound needed). still emphaticaly closed down in Leningrad yes.

of tone by tax cuts, ani), other Sterling, holester 211

on whether this conference then ↑ Pare. terday, had 150,000 vialiors in 15. money" men. Every one

appears to the outside world to daya, Tasa the Soviet news their epéecties still dilates on devices, nothing much can be Indonesian guilderiji (pet, 100),

be setting about its business in Singapore (Bleuita) ngency reported today,China the need for "und money, hoped from public works amticals per 100)

arealisilo spirit, Mail Special,

honest" money, good money!ław Reuter.

United Press.

NEW YORK MARKET

New York, Sept. 29. Rubber futures closed point higher to 10 points lower with sales of 50 contracts.

Halr

De contracta

the business was re in exchanges

of

for other

In the spot market

Pors quoted spot No. 1 RSS at doalers 22% cents por pound. A fair factory business. was reported the No. 3 and No. 4 itone in

sheets.

Dec.. March 1914

May

July

Sept.

Dec.

LONDON TIN

22.85 bl 27.53 bid

21.43 bid

-0123

22.88 bid

Busine

015 418

22.55 bld

Three month čin, buyers

605

22.55 bld

weiler

CD4

United Press,

Business Bettlement

6:00

00

--United Press.

AMSTERDAM MARKET

Amsterdam, Sept. 20~~ rubber market war quiet. Closing prices;

Tho

No. 1 rubber pr íb.......... 132 nom. ito, a rubber per the 1:30 30m

No. 3 rubber per lb... 1.73 nom.

No. crepe rubber-

1.00 nom.

-United Press.

Among

that

the

any

"

011

on

1034-

May July

cents)

Spot Doc.

16346

March 1954.

130-1

MAY July

117-101 1513%

Rye (Prices per busheln centa)

9pot Nov. Jan. 1034

March May

Bagley---{Price per

Kérice per bushel in cents

Back,

........... 00344-264

23034

120-100 New York for 200 $13.80 Dom-United Press," "Lemm

Spot

"conunter-cycle of

for Exchange Rates

Inda China" plasizes ((per:: 100)

repereus-

Rearmament the World Moral Assembly here. He said that the problems of today could bo solved if all people treated them in the spirit that they found at the

expertedWA which is continually Assembly.

of

reserve

London Foreign task force,"

Micckholm

Labon

Exchange

Derische Mark

Flocked MaIK

London Sept. 10.

5+2.74 5/10

the

JAPANESE BONDS

London, Sept. 29.

Japanese bonde

PD" (6 of 1934),

Consol

Fress.

I