ARGENTINE AGREEMENT

Greymouth Evening Star, 18 September 1946, Page 7

ARGENTINE AGREEMENT

ARRANGEMENT FOR RAILWAYS OPERATION PURCHASE OF MEAT SURPLUS (Rec. 11.5 a.m.) LONDON. Sept. 17. The text of the trade agreement between Britain and the Argentine shows that agreement has been reached on payments, meat and railways, and the negotiation of a new trade treaty. Trade financial payments between Argentina and the sterling area will continue to be settled in sterling, and all sterling payments received by Argentina will be freely available for payment in current transactions anywhere. The British Mission agreed to buy the exportable meat surplus from Argentina for four years from October 1, 1946, after providing for a reserve for sale by Argentina to othei markets of not more than 17 per cent, during the first year and 22 per cent, in the second year. The prices will exceed the prices of the bulk contract made at the outbreak of the war by at least' 45 per cent. Britain will buy any balance of meat reserves which Argentina fails to sell to other markets. Prices to be Fixed. Definite prices for British meat purchases will be fixed with refeience to the results of special discussions between British and Argentina technical experts. _ The free availability of sterling received by Argentina can be exercised by transfer to the American account or at the Bank of England s option into gold, so long as the present technical difficulties temporarily preventing the transfers of sterling to certain other countries exist. As at the date of the agreement the spot balances of sterling accumulated in the Argentine special account are to be established. Argentina will be free to use this balance and also to repatriate outstanding sterling and public debts and repatriate British investments in Argentina. The agreement provides for immediate discussions for modification of the recently expired Anglo-Argentine treaty, the provisions of which will continue in force until December 3 . The agreement also provides lor the formation of ap Argentine company to acquire and operate the assets of the British-owned railway companies in Argentina, the new company accepting responsibility for the rights and responsibilities of the British companies, except in relation to debentures issued by the British companies. The agreement envisages completion of the railways transfer by January 1, 1947. Cash Payment. The meat prices arranged will remain in force until the end of September,- 1948. Britain, in order to facilitate the adjustment to present costs of production will make a single cash payment of £500,000 in free sterling to Argentina. . The Press Association _ points out that the present meat prices are- already 35 per cent, above those paid at the outbreak of the war. The payments agreement means that £20.000,000 of Argentina s £130,000,000 accumulation will be freed during the next four years.