THE AGREEMENT

Ashburton Guardian, Volume 54, Issue 257, 11 August 1934, Page 5

THE AGREEMENT

GERMAN-BRITISH EXCHANGE.

THE PROMOTION OF TRADE.

PROVISIONS OF THE DOCUMENT

(United Press Association—Copyright) (Received This Day, 11.50 a.m.) ' LONDON, August 10. Following the exchange "of lists appended to the recent Anglo-German agreement on transfers, negotiations have been concluded in Berlin for an agreement on exchange between the two countries. This agreement has been signed by Berlin and will come into force on Monday, August 20. The agreement is designed to promote current trade transactions between the two countries and it relates to debts falling due on or after August 20 next. The procedure to bo followed provides that German firms holding a permit for general exchange under the agreement, which is publish-1 as a White Paper, and United King' dom firms holding a permit for general exchange under the German exchange Tegulatiofiis may, insofar as sums in foreign exchange allotted are. insufficient to pay for imports, make payment in reichsmarks into a special account with the Reichsbank in respect to certain goods and subject to the general limit laid down in the agreement. The Treasury has requested the Bank of England to' open a special account with the Reichsbank for the purpose of the agreement. The reichsmarks will be sold, for the account of' the creditor concerned in chronological order of receipt into special account. The. Bank of England will sell such, reichsmarks at its discretion and subject to specified provisions and will credit the beneficiaries with the sterling proceeds, less a charge of one-eighth per cent. The agreement has , been drawn up on the same lines as a number of other agreements concluded between Germany and other countries. It has been made clear, as a result of the discussion on the matter in Berlin, that any debt in respect of which payments are made through the special account constituted under such agreement is discharged only to the extent of the actual proceeds of the sale of the reichsmarks paid in by the debtor. Article 3 of the agreement provides that the special account may be utilised in respect to goods produced or manufactured in the United Kingdom, or goods which.have been, processed in the United Kingdom? Limited utilisation of the' special account is provided in respect of: Firstly, goods other that United Kingdom goods described in Article 3, if. j* » P™ v f that the German buyer of these good, has purchased like goods before Januarv 1 1933, through a firm established in the United Kingdom .in appreciable quantities and regularly; and, secondly, goods .produced or manufactured in any British colony or overseas territory and territory under British protection or any mandated territory in respect to which the mandate is exercised by the Government of the United Kingdom., ; / It will be observed that the above Anglo-German agreement on exchange relates only to debts falling due after August 20. It has not .been possible to include provisions for the settlement of existing debts owing to British exporters to Germany, which, on account of the exports of cotton yarn from Lancashire alone are believed to amount to about £500,000 Tins aspect of the problem awaits further negotiation. If, however, the new agreement results in the resumption of trade that is hoped for, settlement of outstanding debts will obviously be facilitated—British Official Wireless.