NEW AGREEMENT.

Auckland Star, Volume LXV, Issue 153, 30 June 1934, Page 9

NEW AGREEMENT.

BRITAIN AND FRANCE.

Based on Most-Favoured-Nation Treatment. GUARANTEES FOR COAL. (British Official Wireless.) RUGBY, June 20. The new trade agreement between Britain and Franco will come into operation on July 1 and remain in force until April 1, 1935. After that it can be continued subject to the right of either Government to denounce it at any time so as to terminate it three months after the end of the quarter in which notice is given. Under the agreement each country undertakes to grant most-favoured-nation treatment in matters of Customs duties to goods which arc the produce of and consigned from the other, apart from certain exceptions; All quotas in respect to British goods are to be restored to 100 per cent of Britain's proportionate share ill each trade concerned. \ The surtax of 20 per cent ad valorem imposed on certain French goods is removed. The agreement also contains certain provisions regarding the operation of French quotas designed to enable British trade to utilise fully the quotas allotted to it.

A guarantee has been given as to the quantities of many of the more important classes of British goods subject to the quota in France which will be admitted from Britain during the period of the agreement. Regulating Coal Trade. In regard to imports of British coal into France the French Government undertakes to maintain the full existing percentages, namely, 49.5 per cent of the normal quota, which at present is 58.5 per cent of the average imports into France from all foreign sources in the period IS2B to 1930. Thcio are in addition to the basic percentage certain supplementary allocations for port?, etc. It is laid down that these are not to be reduced in greater proportion than the normal quota and shall remain open to free competition. For metallurgical coal freedom of purchase is to be maintained as at present. These fruarante.es regarding coal are linked with an agreement between British mine owners and French coal importers regarding the purchase of pit props. On Britain's side the duties on certain classes of goods imported from France which are of special importance to the latter country are lixed for the period of the agreement. The most important of these classes aro silk, artificial silk and manufactures thereof. British duties on I French brandy and sparkling wines are not to be increased during the period of the agreement. A further clause makes provision as to the procedure if cither Government should take action which upsets the equilibrium resulting from the agreement.