TRADE AGREEMENT

Ashburton Guardian, Volume 50, Issue 159, 17 April 1930, Page 5

TRADE AGREEMENT

BRITAIN AND SOVIET.

PROVISIONAL TREATY SIGNED. DOMINIONS MAY COME IN. United Press Association—Copyright.) (Received This Day, 2.5 p.m.) LONDON, April 16. The Secretary of State for Foreign Affairs (Mr Arthur Henderson) and M. Sokolnikoff (Russian Ambassador) this afternoon signed in the Cabinet room of the Foreign Office ai temporary commercial agreement between Russian and Britisii Governments. It is agreed that the parties accord the most-favoured-nation treatment to the subjects, citizens, jurisdical persons, national produce and manufactures of each other.

The following are exceptions:— First: Special provisions relating to trade contained in treaties concluded by the Soviet Union with States which iii, August, 1914, formed an integral part of the former Russian Empire, and with Continental border States in Asia.

Secondly: Rights accorded to any third country forming part of the Customs Union with the Soviet Union Thirdly: Privileges accorded by the Soviet Union to holder States with respect to-local trade between inhabitants on the frontier zones. The British Government agrees, in view of the State monopoly of foreign trade in Russia., to accord t£ the Soviet Government the right to establish in Great Britain a trade delegation consisting of a Trade Representative and his two deputies, forming part of the Soviet Embassy. These three persons are to be accorded all diplomatic privileges and immunities, and similar immunity, shall attach to offices occupied by'the trade delegation and exclusively for its commercial functions, which shall lie to facilitate and encourage the development of trade between the two countries and to represent the interests of the Soviet Union in all that pertains to trade. The delegation, shall be responsible for all transactions concluded by the trade representative and persons authorised by him, hut not for the acts of State economic organisations except when such responsibility has been clearly accepted by the trade representative. The names of trade representative and of persons employed to represent him shall be periodically published in the Board of Trade Journal. Any questions arising from commercial transactions entered into in this country by the trade delegation shall be settled* bv .British Courts. National treatment is accorded in agreement to the vessels, cargoes and passengers of each country, and the most-favoured-nation treatment as regards coastal trade, subject to reservation of the right of sabotage as regards trade, between two ports on the same coast. . .

Excluded from these provisions are fishino- rights, immigrants, emigrants and oilgrims, and ships' cargoes and passengers registered in British selfgoverning dominions. The provisions of the agreement may by mutual agreement be extended to Britisii self-governing dominions by ih'e simple exchange of Notes, and they may also be extended on! condition oi reciprocity to any of the British Colonies, possessions, Protectorates ana mandated territories if the Soviet Government is so notified by the British Ambassador at Moscow. In this event Soviet trading organisations may send thither agents acceptable to the,-Gov-ernment concerned to carry out commercial transactions. Such agents shall have no diplomatic or Consular privileges or immunities. It is provided that if Russian produce is accorded the most-favoured-nation treatment in British dominions and other overseas territories which have nevertheless not adhered to the agreement, the Soviet Union will accord reciprocity, reserving to itself the right to denounce this provision m respect of any Dominion or India. The agreement shall remain :n force till the coming into force of the commercial treaty, subject to the right ol either partv to denounce it, or any arrangements entered into between.the Soviet Government and the British Dominions or other overseas territories at six months' notice Tn an annexed protocol it is stated that the contracting parties.are animated by the intention to eliminate from their economic relations all form of discrimination, and will be guarded only bv commercial and financial considerations. They will adopt no legislative or administrative action such as would olace the trade of the other party in a position of inferiority to that of any other foreign country. Tn accordant with the above principle, trade between Britain and Russip shall be eligible for consideration on the same basis as trade between Britain and oilier foreion countries in connection with any legislative or administrative measures taken bv the Britisii Government for the granting of credits to facilitate such trade. The signature of agreement was accompanied by a declaration by Mr Henderson that the Union of South Africa and the Irish Free State were excluded from the provisions relating to* the Dominions.