ANGLO-RUSSIAN TRADE

Greymouth Evening Star, 13 October 1939, Page 8

ANGLO-RUSSIAN TRADE

A SIGNIFICANT AGREEMENT [BRITISH OFFICIAL WIRELESS.] (Recd. Oct. 13, 10.20 a.m.). RUGBY, October 12. The announcement that trade relations between Britain and Russia are to be reinforced by the resumption of the export of Russian timber to Britain, against consignments of tin and rubber, which Britain some time ago contracted to sell to her, is likely to be the forerunner of others, perhaps operated on a similar basis, which will broaden the channel of trading intercourse between the two countries. The agreement is entirely commercial, but the significance of its completion in the present circumstances is noted in the Press, which, recalls that the outbreak of war interrupted intercourse between the two countries, which normally maintain an active trade in the commodities covered by the agreement. It has been negotiated as the result of a fortnight’s negotiations in London between the British Government and the Soviet Trade Delegation, and a factor taken into account in hastening the conclusion of the agreement was that, owing to the withdrawal of export licenses, a number of cargoes of timber destined for this country were held up at north Russian ports. A number of these ports will become ice-bound by the end of November, and it was clearly necessary to get cargoes of timber out while the ports remain open to shipping. The Soviet Government will probably provide icebreakers, to keep the northern ports open as long as possible. The agreement covers, on the one hand, timber previously contracted for, but not delivered because the Soviet Government broke its contract, on the grounds that the sterling balance offered had become useless owing to depreciation, and it feared that it would be unable to obtain commodities required from the United Kingdom owing to export restrictions, and, on the other hand, rubber and tin, of which substantial surpluses are held in Britain. From the British point of view, pending the resumption of Norwegian deliveries, the agreement rectifies a threatened temporary dislocation of supplies, caused by Russia’s refusal to deliver timber, and it is to be noted that the rubber and tin to be supplied is of equivalent normal quantity from the United Kingdom, in relation to the total Soviet consumption. It is not such as to involve danger that they will be resold to Germany.