The Plan for Wheat

How should the world's wheat be distributed--and at what price? In Washington last week, after more than a year of dickering, the 36-nation International Wheat Council (notably unrepresented: Russia and Argentina) had an answer. It announced "the first practical international agreement" on wheat distribution.

Under the agreement, the 33 importing nations in the group will buy at least 500,000,000 bushels a year for the next five years from Canada, the U.S. and Australia. Canada will supply 46% of it, the U.S. 37%, Australia the rest. Maximum price will be $2 a bushel. The minimum will be $1.50 the first year, will then drop 10-c- a year to a low of $1.10 in 1952.

Delegates hailed the agreement with such high-sounding phrases as "the first multilateral long-term contract in history." But a wheat agreement had been signed by 22 nations in 1933, and had proved unworkable. Besides, this one was not yet a contract. Before it becomes one, it must be approved by Congress and the other governments concerned. And as long as wheat remains high (current cash price: around $2.50 a bushel), the U.S. farm bloc will bitterly fight any attempt to put it under a $2 ceiling.

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