Your 1107 of 9th August.  Proposals for a World Food Board.
Following may be taken as the Australian view.
1. We agree with most of the principles mentioned in the cable and
from that point of view are in general prepared to agree to an
examination of a scheme which would give consideration to them. We
see practical difficulties of course, but realise more details and
greater clarification will, no doubt, be forthcoming.
2. It is clear, however, that most of the proposals are also
included in some form or other in those laid down for
consideration at the forthcoming International Trade Discussions.
This applies particularly to International Commodity Agreements
and the functions of the Commodity Commission referred to in the
draft proposals for the international Trade Conference.
3. The manner in which the financial proposals fit in with other
Governmental International financial ideas is not clear. There
would seem to be two major points in this connection:
(i) The extent to which individual countries would contribute
finance. Here obviously much would depend upon the individual
commodities and the interest of the various countries in those
(ii) There appears to be a question whether the International Bank
would be prepared to provide credits for the holding of stocks. if
so, it would seem to be something of a departure from the role
designed for it. The part to be played, if any, by the Monetary
Fund would also come under review.
4. We see practical difficulties in arriving at over-all
principles which are to apply to the several foodstuffs products.
Difficulties that arise out of one or more major products might
hold up consideration of others. Some products lend themselves
much more to international regulation than others. Different
countries are interested in particular products, both as exporters
and importers to varying degrees. Individual Commodity Agreements
already in mind (perhaps adapted to meet F.A.0. needs) might be
best. At any rate we see confusion arising out of consideration of
the International management of foodstuffs by the F.A.0. and the
I.T.O. at the same time, as will be the case if the F.A.0. plan is
to be under examination in the next few months.
5. The United Kingdom Long Term Bulk Purchase Agreements would
come under review, but probably this could be reconciled.
When the question comes before the Copenhagen Conference, it is
desired that you put forward these points of view in appropriate