TRADE WITH GERMANY

New Zealand Herald, Volume LXXI, Issue 21907, 17 September 1934, Page 9

TRADE WITH GERMANY

DELEGATION FROM BRITAIN SEQUEL TO RECENT ACTION (Received September 16, 5.5 p.m.) British Wireless RUGBY. Sept. 15 The Foreign Office announces that it has been agreed between the British and German Governments that a delegation, headed by Sir Frederick LeithRoss, Chief Economic gVdviser to the British Government, shall proceed immediately to Berlin to instigate discussions on the commercial and financial relations of the two countries, as affected by the new German machinery for the control of imports and the allocation of foreign exchange.

The import restrictions imposed in decrees recently announced by Dr. Schacht, Minister of Economics in Germany, are being carefully studied by appropriate Government departments in London. Newspapers had anticipated that their effect on the Anglo-German exchange agreement would be the subject of early negotiations with Germany. The Daily Telegraph says the object of such negotiations would be to seek to define an entirely new basis for commercial relations between Germany and the United Kingdom. In connection with' discussion of this broader issue, attention is directed to the decision of Lancashire cotton spinners to reject the German proposals for the settlement of outstanding commercial debts.

This decision has caused little surprise to be voiced in the comment in the newspapers which reflect commercial opinion, as the proposals generally are regarded as most unsatisfactory.

In accordance with the German decrees full control will be exercised over all imports into Germany from September 24. The machinery for operation and control provides for estimates being made in advance of, the amount of foreign exchange likely to be available each month and the limitation of that month's imports to be strictly controlled by the issue of permits, so that payments may be met within the estimate.

Two important changes are introduced by the new system. Firstly, the control applies not only, as in the past, to raw materials, hut to imports generally. Secondly, the new machinery will involve the abolition of the general exchange permits which formed the basis of the recent Anglo-German agreement.

GERMANY'S DEBTS INDUSTRIES IN ENGLAND DEPUTATION TO MR. RUNCIMAN (Received September 16, 6.35 p.m.) LONDON. Sept. 15 The wool, cotton and coal industries have appointed a deputation to see the President of the Board of Trade, Mr. Walter Runciinan, on Monday regarding Germany's debts.