Anglo-American Barter Deal

Northern Advocate, 27 June 1939, Page 10

Anglo-American Barter Deal

(Received 1 p.m.) LONDON, June 25

The speed with which the AngloAmerican barter deal was completed was partly due to the fact that the quantities involved were considerably under those originally contemplated, and the technical problem and objection thus mitigated. Rubber affected amounts to only 6 per cent, of the quota, or nine weeks’ American consumption. It would not be an overwhelming catastrophe even if it did get out of control, which, however, is most unlikely, for the agreement contains most stringent provisions against the use of stocks for ordinary commercial purposes. Consequently the deal may provide some stimulus to the rubber price. The barter agreement between the United States and Britain, which involves 600,000 bales of American cotton at present held by the Government as security against loans to farmers, and 85,000 tons of rubber, is subject to Senate ratification. The United States will deliver the cotton, under the new barter plan, which will be approximately half of the British consumption of certain stocks, aboard ships designated by Britain at New Orleans and Atlantic ports. Britain will deliver the-rubber to American ships at Singapore or other convenient ports.

The value of the rubber will equal that of the cotton. The pricq of the latter will be fixed according to the rates at the United States port of delivery instead of the Liverpool (England) price, which is usually lower. • The price of the rubber will be fixed on the average value between January and the present price. An important feature is that Britain must buy the rubber on the open market, since she has no surplus, and that the rubber will come from Dutch or other soui'cos.

Unprecedented Exchange

It is anticipated that the shipping of American cotton and British rpbber under this first agreement in history for an exchange of commodities for war stock purposes will begin on October 10.

The United States Government is hastening the empowering legislation. It is announced that negotiations with the Netherlands have broken down, but the talks with Belgium are progressing.

The Anglo-American deal has aroused only favourable comment. Senator James Byrnes, who sponsored the plan with Mr Roosevelt’s approval, said he expects little or no opposition when he introduces the empowering legislation next week.

The French open golf championship was won by Martin Pose (Argentine) with an aggregate of 285. T. Odams (Belgium) was second with 286, and C. Denny (England) third with 288.