TRADE AGREEMENT

Dominion, Volume 29, Issue 299, 14 September 1936, Page 9

TRADE AGREEMENT

Britain and Turkey (British Olliviul Wireless.i Rugby, September 11, On September 2 a new trade and clearing agreement, the text of which is published to-night, was signed between the United Kingdom and Turkey. It comes into force on September 17, and replaces the trade and payments agreement signed on June 4,193 a. The articles relating to trade repeat the substance of the corresponding articles of the agreement of June, 1935, but the effect of the provisions for payment is to place Anglo-Turkish trade in future on a full clearing basis. Of the sums received by the clearing office 70 per cent, will be used for settlement of debts in respect of United Kingdom goods exported to Turkey and 30 per cent, will be placed at the free disposal of the Central Bank of Turkey. Provision is made for compensation in transactions involving exchange of certain goods between Turkey and the United Kingdom, and also for the import of certain Turkish goods into the United Kingdom in settlement of outstanding trade debts. The effect of the new agreement should lie to reduce materially delays in payment which are nt present experienced by United Kingdom traders, as is shown by the fact that over £1,000,000 was blocked in Tut’kev awaiting payment to United Kingdom creditors at the end of August.