TRADE AGREEMENT

Evening Post, Volume CXVII, Issue 52, 2 March 1934, Page 8

TRADE AGREEMENT

BRITAIN AND RUSSIA

EQUALISING EXCHANGE

RUXCIMAN EXPLAINS

(Urttlsb OlHclal (Beceived March 2, .1.30 p.m.) ■ ; RUGBY, March 1. • In opening the ' House of Coimuons debate this evening on the Auglo-Eus-sian Temporary Trade Agreement, the President of the Board of Trade, Mr. Walter Runciinaii, recalled that in throe years, from 1929 to 1933 inclusive, the total value of Russian goods and materials sold- in Britain was approximately £12i,000,000, whereas goods Britain sold to Eussia came to about £40,000,000. One of the fiTßt' objects of tho British Government was to bring those two figures much nearer together. The Bussians had now accepted the view that Britain could not continue buying largely from them while they 'bought so little from Britain. He thought that was a very handsome admission on their part, but it was one which was absolutely necessary as the foundation of negotiations during the' ■ last twelve months.,, . APPROXIMATE BALANCE. The agreement accordingly included provisions whereby the Eussians undertook so to' adjust business that there would be, after an initial period ; of change-over, an approximate bulaiiee ef the .payments under which' the money they received in Britain for their goods would in the main be spent in Britain. In the agreement the Eussians had acknowledged Britain's right to prohibit their goods, if they were likely to frustrate Imperial preferences provided for in the Ottawa Agreement. . '|There again," said Mr. Eunciman, "we must express satisfaction that they have been ready to.accept our view." The agreement provided that tho subjects, citizens, etc., of cither country should enjoy in. the other country all the trading facilities, rights, and privileges accorded to subjects, citizens, etc., of any other country.-- Tho gooda of either country should also enjoy inthe country of either, the facilities, rights, and privileges granted to ' any; other foreign country in all that related to import prohibition, restriction, and Customs duties. The 'prqcedure.laid down in .regard to- preferences .was that, if' either party represented to the other that preferences were being frustrated or home production detrimentally affected as a result of prices created or maintained by such action, there were to bo negotiations. ~.,....., ....... NEGOTIATIONS FIRST.1 " ■If the negotiations succeeded, all was well. If the negotiations failed, the first party might intimate to the other that most-favoured-nation treatment in respect of import prohibition should cease to'apply to the goods in;question, this intimation to take effect in not less than three months from the date of the first representations. In regard to shipping, they had been notified that it was the' intention of the Soviet Government for the duration of this temporary agreement to utilise an increasing proportion of British shipping provided that"such services were available at the prevailing market rates.- The Soviet Union had further declared.that they'were prepared to accept the ■jurisdiction' of the' United Kingdom Courts in respect of transactions entered into by their trade delegation and*it was provided' that the British Courts- should ..be arbiters in all'cases of dispiites rwliich might arise outside diplomatic channels. Tho Agreement provided for diplo- ; matie immunity;to ,be accorded to the Trade Eepres'entative of" .the" Soviet Union in London and his two deputies and to, the offices .of the delegation.., Britain had "'formally retained ' all rights with respect to debts and claims. There would, in future be a considerable extension iv the-amount and character of tho purchases made by the Soviet Government in Britain.