ANGLO-GERMAN TRADE

Evening Post, Issue 67, 17 September 1934, Page 9

ANGLO-GERMAN TRADE

DELEGATION TO BERLIN

EFFECT OF RECENT DECREES

(British Official Wireless.)

BUGBY, September 14,

.. The foreign Office announces that it has been agreed ( between his Majesty's Goveniment in the United Kingdom and the German Government that a delegation neaded by Sir Frederick Leith Boss, Chief Economic Adviser to his Majesty's Government, shall procged immediately to Berlin to instigata discussions on the commercial and financial relations of the two countries as affected by ,the new German' machinery for the. control of imports and the allocation of foreign exchange.

The effect of the recent decrees issued by the German Minister of Economics, Dr. H. G. H. Schacht, has been subjected to close examination during the past few days with particular reference to their bearing on the AngloGerman exchange agreement which was signed as recently as August 10, and came into operation on August 20.

In accordance with these decrees, full control will be exercised over all imports .into - Germany as from September 24. Tho machinery for operating the control provides for estimates being made in advanco of the amount of foreign exchange likely to be available each month and limitation of that month's imports, strictly controlled by tho issue of permits, so that payments may be met within the estimate.

Two important changes are introduced by the new system. Ffrst, the control applies not only, as in the past, to raw materials, but to imports generally, and, secondly, the new machinery will involve the abolition of the general exchange permits which, formed the basis of the recent Anglo-German agreoment.

In these circumstances discussions with the German Government are generally considered necessary to discover in greater detail how the new machinery will function, whether the recent AngloGerman agreement can continuo to operate under tho new regulations, and, if not, whether it is desirable to substitute for it a- fresh agreement. Now that Lancashire spinners have refused the terms offered by Germany for tho repayment of outstanding debts, the whole question of tho repayment of Germany's existing commercial debts to Britain remains unsettled, and it is generally expected that this matter will bo raised in the Anglo-German discussions.