The first objective of these transactions is; of course, the intention of the British authorities to obtain their war requirements, although the wool transaction covers quantities which are twice as large as the total British requirements, while the cocóa deal is even four times as large as Great Britain's annual consumption. The latter transaction appears especially remarkable as cocoa stocks in the United Kingdom covered about fifteen months' domestic consumption when war started.
In addition to obtaining their supplies, however, the British authorities are able through their Empire purchases to save huge amounts in gold and foreign exchange which are 80 vitally needed to pay for United States war supplies. In fact by re-exporting part of the excessive wool and cocoa supplies to neutral countries and especially to the United States the British Government is in a position to acquire new amounts of foreign exchange. Moreover, the transactions are based on prices in force before the outbreak of war and are thus much below the present international quotations. This represents genuine savings and enables the British Government to maintain its internal price level for the product concerned stable at a reasonable level.
Text read from the printed page and cleaned; old type leaves the occasional error.