Food Policy.

Since my telegram 30th July [1], discussions have been continued
with the Minist[er] of Food [2] and with his officials on the
probable trend of United Kingdom food imports policy. Have cabled
you separately on canned fruits [3], but in view of the situation
now existing and possibilities ahead, think it desirable to advise
you comprehensively of the present indications as to other
commodities.

Shipping dominates the whole position which has deteriorated for
three major reasons.

(1) Increased severity of losses owing to enemy action.

(2) Increasing delay in discharging and loading cargo owing to
unavoidable congestion at west coast ports and in transport and
storage due, in part, to damage caused by enemy action and in part
to the effect of air raids precautions.

(3) Shifting of military urgency from threatened invasion of the
United Kingdom to the Eastern Mediterranean. This involves drain
on shipping and, in particular, on refrigerated tonnage since many
refrigerated ships considered specially suited as transports have
been taken for Admiralty purposes. This, together with virtual
closing of the Mediterranean for commercial shipping, is seriously
decreasing the amount of tonnage available for food shipments to
the United Kingdom.

The Ministry feel that even if under (1) there is an improvement,
difficulties under (2) and (3) will probably increase.

Dairy Produce. While the Ministry continues to give first priority
to dairy produce, not prepared having regard to the shipping
situation to increase quantities already stipulated in the
contract. They would, however, take greater quantities if they
were available and could be shipped. Taking a longer view of both
war and immediate post war situations, they anticipate increasing
demands for Australian and New Zealand butter, cheese and other
milk products. They are re-examining the question of their
requirements of sweetened condensed, separated milks and dried
separated milk for three to four years period and I will
supplement this cable on these commodities shortly.

Meat. Ministry officials have intimated by way of warning that
shipping situation may at some later date necessitate extreme
economy in the use of refrigerated space for meat. In such an
event they may have to ask for increased proportion of beef to be
shipped bone out, for mutton and lamb to be prepared in forms
admitting of increased stowage and perhaps also for increased
proportion of canned beef In view of the possibility of the
situation forcing shipping economies of the above nature in regard
to all imports of meat, you will no doubt think it well to
consider the matter with your Meat Board so that you may be
prepared if contingencies ever arise.

Fruit. Ministry will not in the present situation commit
themselves to any shipping whatever. In a healthier shipping
position, they would agree to fruit coming forward up to say
1,000,000 cases but only if shipping position improved
considerably. Have asked for a re-statement of the position early
in January in the light of the situation then existing. They would
be prepared however to purchase evaporated fruit probably up to
2,000 tons if it were available. This is tentative estimate but I
am expecting definite figures after matter has been studied and
will deal with this aspect more precisely in a later message.

Dried Vine Fruit will be accorded high priority owing to the
established food value in relation to shipping space required.

Ministry, however, are unwilling to commence discussions for 1941
purchase until close estimate of Australian pack available.

BRUCE