Ashburton Guardian Magna est Veritas et Prævalebit. THURSDAY, JULY 17, 1947. TRADE TALKS

Ashburton Guardian, Volume 67, Issue 235, 17 July 1947, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit. THURSDAY, JULY 17, 1947. TRADE TALKS

Negotiations have been proceeding in Moscow for some time with a view to concluding a trade pact between Great Britain and Russia. At least, the main purpose of the talks was to straighten out matters affecting an earlier agreement, and to carry on and conclude a fresh: arrangement. It is somewhat surprising to find talks of the type proceeding at all at a time when Russia has set her face against any move which might be made to rehabilitate Eastern Europe, with whom she really must trade if she is to rehabilitate herself. The fact that the Soviet is even discussing such matters with Britain indicates that there is something of a desire to resume trade with Britain, at all events, if not with the rest of Europe. But the tone of the talks also indicates something else; and that is that Russia, economically, is not as sound as she would have others believe. The main issue holding up these lengthy negotiations appears to be the terms of the repayment of Britain’s 1941 credit to the Soviet Union—the Soviet made the request for readjustment a condition of the trade agreement with Britain. Under this credit, granted under the Civil Supplies Act, Britain has been supplying Russia with considerable quantities of industrial plant and equipment, terms of payment being 40 per cent, credit. By the end of the war she had shipped to the Soviet goods valued at £100,000,000 against Russian orders totalling between £140,000,000 and £150,000,000. Orders outstanding were then estimated at £44,000,000. Since the end of the war Britain has shipped a further £30,000,000 worth of equipment to Russia. Last year Russia claimed that prices- charged for the goods making up the £44,000,000 balance were too high. The British Government thereupon granted a concession of 134 per cent, discount. The generousness of this concession is doubly clear when seen against the sharp rise in world prices of raw materials — materials which Britain must import to make the finished goods. During these latest negotiations the Soviet Unipn has asked for further concessions. The British Secretary of Overseas Trade, Mr Harold Wilson, who heads the United Kingdom trade delegation, has now made a final offer to the Soviet' Government which, according to a recent Foreign Office statement, goes a long way towards meeting the Soviet request. This offer is stated to represent the furthest to which the British Government can go in view of Britain’s present financial position overseas. It is understood that if the Soviet Government is not prepared to make an agreement on these terms, Mr Wilson will return to London early next week. There has been no mention of this haying taken place. In fact, latest reports suggest that agreement has been reached, and if the Soviet has agreed to the British concessions, then it should also realise that Britain genuinely desires not only to trade with her former ally, but is prepared, in spite of her own perilous position, to help others.