NEW ARRANGEMENT

Evening Post, Volume CXXVI, Issue 6, 7 July 1938, Page 9

NEW ARRANGEMENT

PAYMENTS BY GERMANY

UNITED KINGDOM GOODS

PERCENTAGE BASIS

(British Official Wireless.) RUGBY, July 5. The Anglo-German payments amendment agreement of July 1, j which is published today, provides for a new arrangement for the alloi cation of sterling by the German ißeichsbank to pay for German imports of United Kingdom goods. Under Article I of the payments agreement of November 1, 1934, the Reichsbank earmarked ' each month for payment for United Kingdom exports to Germany an amount of sterling equal to 55 per cent, of the value of German exports to the United Kingdom, calculated on the basis of the average of* German export statistics and Britain's import statistics. The 55 per cent, is now superseded by an arrangement under which the Reichsbank will earmark each quarter to pay for Britain's exports a sum of £4,500,000, with the addition or subtraction of 90 per cent of the.excess or deficiency of the amount of £7,500,000 for German (including Austrian) exports for the preceding quarter, calculated on the same basis as under the 1934 payments agreement. This means that as long as German exports, calculated oh the above basis, exceed £30,000,000 each year—and they exceeded Jhat figure even in 1938, when German trade was at a low ebb—the amount to be earmarked for German imports of United Kingdom goods will exceed £18,000,000 (i.e., 60 per cent, of th£ £30,000,000) by ,90 per cent, of the amount by which German exports to Britain exceed £30,000,000. If the sterling proceeds of German exports to Britain are not sufficient to make provision for sterling to be earmarked for German imports of United Kingdom goods and to cover Germany's financial obligations to Britain, it.will be open to Germany to approach Britain with a view to the reduction'of the amount of sterling to be earmarked for United Kingdom exports. ■ - •■..■■