Soviet’s Big Business Deals

Manawatu Times, Volume LIV, Issue 7193, 27 June 1933, Page 7

Soviet’s Big Business Deals

£25,000,000 in Oil £i5,000„000 IN METALS United Press Association— By Electric Telegraph—Copyright Received Monday, 10.30 p.m. LONDON, Juno 26. The Daily Express says that M. Litvinoff is a tireless negotiator and is linding tho Economic Conference just the opportunity he needed to niako commercial contracts which alone can save tho Soviet Stato structure.

Already M. Litvinoff has made tentative arrangements for. a £25,000,000 deal in Russian oil with an AngloContinental group and a £15,000,000 purchase of non-ferrous metals on credit from a Franco-Amcrican syndicate. Two obstacles which must first be surmounted are the recognition of the Soviet Government by the United States which is likely to be granted next month and the lifting of the British embargo which M. Litvinoff may securo when he meets Sir aolm Simon to-day. . , „ , , During tho week-end M. Litvinoff had a meeting with M. Titilascu (Rumania) regarding Bessarabia on which Moscow has never ceased to cast longing eyes.

Italy to Sell to Soviet Russia TERMS Or NEW AGREEMENT more favourable than any HITHERTO REACHED ROME, June 1. Fascist Italy has concluded a new commercial agreement with Soviet Russia, terms of which aro more favourable for the development of close trade than any accord hitherto reached betweeu tiio two countries. The agreement falls into two the first dealing with a tariff convention, and the second with a credit guarantee pact valid for the _ current rear. The agreements were signed in Rome on April 6 by Signor Mussolini and Mr Lcvcnson, commercial representative of the Soviet Government. The tariff convention contains t e most-favoured-nation clause. The agreement for tho guarantee of credit w more or less on the lines already laid down in the Italo-Soviot trade pacts concluded in August, 1930, and in April, 1931. The Italian Government will guarantee to Italian exporters 75 per cent, of the value of tho orders placed in Italy by the Soviet Government up to a total of 200 000,000 lire or approximately 10,500,000 dollars at

statistics show that the -value of Russian exports to Italy was 178,000,000 lire in 1928, 341,000,00 lire in 1929, 552,000,000 lire in 1930, 561,000,000 lire in 1931, dropping to 333,000,000 lire in 1932. In addition to wheat, tho most important products purchased by Italy from Russia arc mineral oils, timber and coal. Italian exports to Russia, whie amounted to 65,000,000 lire j and to 71,000,000 lire in 1920, rose to 107,500,000 liro in 1030, 275,000,000 lire in 1931 and to 237,000,000 in 1932. The latest available figures are for January, 1933, which show that Bus sian imports to Italy amounted to eg oqo 000 lire and Italian exports to Russia totalled only 2,500,000 lire. Eighty per cent, of the Italian exports to Russia is represented by machinery and allied apparatus. Negotiations for the agreement were' opened about a year ego, and it was only recently, following the British trade embargo ou Soviet goods, that a compromise was reached. The Soviet had insisted on long-term credits from the Italian firms with which it dealt. The length of credit given to the Soviet by the previous trade agreement varied from a minimum of nine months to a maximum of three years. Tho Italian Government has now apparently secured an assurance from Russia that payments will bo made more quickly, and tho maximum length of credit has now been fixed at 19 months.