CREDIT TO SOVIET

Gisborne Herald, Volume LXVIII, Issue 20637, 18 August 1941, Page 6

CREDIT TO SOVIET

BRITISH AGREEMENT TEN MILLIONS PROVIDED RECIPROCAL TRADE PLAN (Elec. Tel. Copyright—United Fresg Assn.) (British Official Wireless.) Reed. 1.40 p.m. RUGBY, Aug. 17. An important agreement regarding trading between Britain and Russia was signed in Moscow on Saturday night. It was formally announced in London to-night that the agreement effects the exchange of goods on credil and on clearing between the Russian and British Governments. The agreement provides for the supply of considerable quantities ol British goods to Russia, as well as the supply of Soviet goods to the United Kingdom. Under the agreement the British Government grants Russia a credit of £10.000.000 at the rate of 3 per cent for an average period of five years. When this credit is exhausted the two Governments will enter into negotiations for a further amount. The agreement was signed on behalf of Russia by the People's Commissar of Foreign Trade. M. A. Mikoyan, and on behalf of Britain by the Ambassador, Sir Stafford Cripps. It is stated in well-informed circles that Britain is already importing large quantities of Russian goods, and the credit applies only to the balance of British exports over imports, and is especially calculated to produce smooth-running financial arrangements in these transactions. Large quantities of goods may, of course, be supplied from Russia on terms outside the agreement, and it is noteworthy that the texL of the agreement makes it clear that this is only the first instalment and further negotiations will take place when it is exhausted.