TIN Pool. ACCEPTED It was announced last week that the
tin producers of Malaya had voted in favour of the " Buffer Pool " by approximately 2 to t, although the majority of European producers in favour was very narrow. On the strength of those figures the British authorities gave their consent in principle to the pool subject to the production of a satisfactory detailed scheme at a later date. The very next day the International Tin Committee cut the quota for the third quarter of the year from 55 per cent. to 45 per cent., but increased the standard tonnages of Malaya and the Dutch East Indies each by 74 per cent.
The decision naturally raised strong protests in Malaya. The very numerous small-scale Chinese producers had voted strongly in favour of the " Buffer Pool " in the light of an earlier communique from the International Committee, which suggested that the quota could be maintained at 55 per cent. by allocating 25 per cent. of that amount to the buffer stock. They had supported the pool, not because they were in favour of accumu- lating a stock of 15,000 tons of tin to control the market but because they would have supported almost any device for avoiding a further cut in production. These hopes have already been disappointed, for the 74 per cent. extra standard tonnage now granted is less than the concession already made to Malaya earlier this year, which she now relinquishes. More- over, the 45 per cent. quota contains an unspecified amount for the buffer stock. One may feel that the protest is reasonable and one may doubt the wisdom of forming the "Buffer Pool." It is dear, however, that the tin control has taken a decision drastic enough to force the price of tin gradually upwards unless, demand declines much further.
Previous page
