STEEL AGREEMENT SIGNED

Hawera Star, Volume LIV, 14 June 1935, Page 7

STEEL AGREEMENT SIGNED

Market Shares Immediately Rise £2,000,000 in Value FILLIP TO BRITISH TRADE (United Press Association —By Electric Telegraph Copyright). LONDON, June 13. Iron and steel shares, for many years the Cinderellas of the market, blazed up on receipt of news of a steel cartel agreement, says the “Daily Express.” Boom conditions prevailed today. Values of ordinary shares in 16 leading British Iron and steel firms increased on paper by £2,000,00. The British Iron, and Steel Federation, in a statement regarding the conference with the international steel cartel held at Luxemburg on June 4, said yesterday that the terms of an agreement were settled for the co-operation of the British industry With the international steel cartel at the expiry of the present temporary agreement on August S next. The statement added that the importance of comprehensive co-operation between such basic industries on a world-wide scale could hardly- be exaggerated. In effect it was calculated to increase economic stability in participating countries and thus contribute substantially to the restoration of international trade and prosperity. By tho terms of the agreement, which is for five years with a break at three years at the instance of either party on giving six months’ previous notice, imports into British markets from the cartel countries of all iron and steel products coming within the purview of the federation shall not exceed 670,000 tons during the first 12 months. In eacii subsequent year during the life of tho agreement imports shall not exceed 525,000 tons per annum. Tho agreement also secures for British industry that proportion of the total export trade in neutral markets which it enjoyed in 1934. Existing international agreements in which British industry is participating, covering rails, tinplates, etc., form an integral part of the general agreement. To give effect to the general agreement a number of subsidiary agreements will be necessary, involving negotiations between various sections of the iron and steel industry and corresponding sections in tho cartel. These negotiations arc proceeding.