IMPORT QUOTAS

New Zealand Herald, Volume LXXI, Issue 21698, 13 January 1934, Page 11

IMPORT QUOTAS

FRENCH REDUCTION DECISION TO RESTORE STIFF LEGAL ARGUMENT PRELIMINARY TO AGREEMENT By Telegraph—Pres3 Association—Copyright (Received January 12, 8.5 p.m.) ' LONDON". Jan. 11 An official message from Paris states that France has decided to restore within a few days full quotas in respect to "a very abundant list of United Kingdom products." Details show that the French Government has agreed shortly to reduce by 4 and 6 per cent respectively the duties on British semi-manufactured and manufactured articles. However, although the 75 per cent quota is to be restored wholly in respect to many products a smaller percentage only is promised on others as in the case of the United States.

The agreement followed a stiff legal argument between Sir Robert Cahill, Commercial Counsellor at the British Embassy in Paris, and M. Coulondre, French Director of Commercial Affairs. Sir Robert contended that the Franco-British trade convention of 1882 granted Britain most-favoured-nation treatment. Therefore France having restored the quota to the United States was bound to do the same for Britain.

On the other hand France declared that quotas aimed at restoring a £150,000,000 trade deficit were not invented in 1882 and therefore were not covered by the treaty. M. Coulondre argued that failing a satisfactory agreement France might be compelled to denounce the treaty, for which three months'- notice was required. Eventually he yielded, probably fearing British reprisals. The restoration of the French quota on British goods does not apply to Australia, presumably because the Commonwealth's tariffs against France are higher than those of Britain.

TRADE WITH RUSSIA

AGREEMENT SIGNED PARIS. Jan. 11 The Franco-Russian trade agreement, which has been signed, provides for favourable treatment of Russian imports, the purchase by Russia of French goods to the value of £3,000,000 within a year, and for Russian commercial representation in France.