BRITAIN AND ITALY

New Zealand Herald, Volume LXXII, Issue 22098, 2 May 1935, Page 11

BRITAIN AND ITALY

TRADING ARRANGEMENT RESULT OF NEGOTIATIONS British Wireless RUGBY, April 30 The Parliamentary Secretary to the Overseas Trade Department, Mr. D. J. Colville, announced in the House of Commons to-day that as a result of the Anglo-Italian negotiations it had been agreed that the best course for the present was to dontinue, with certain adaptations, the provisional arrangement which was concluded on March 18. Either Government had the right to terminate the arrangement at the end of any month from June onwards, or to propose new negotiations for a definite agreement. The arrangements now made, which would come into force on May 1, were set out in an exchange of Notes. Mr. Colville drew particular attention to a feature of the agreement. Tho Italian Government, he said, had agreed to arrange that all persons in Britain from whom payments were due to persons in Italy in respect of Italian goods exported to the United Kingdom, on or after March 18, 1933, and of freights earned by Italian ships carrying goods between the two countries, and due on or after May 1, 1935, would be authorised by the creditors in Italy to make such payments into a special sterling account at the Bank of England. Into this account .ill sums received from Italian exports to the United Kingdom and from the freights referred to were to be paid. This special sterling account was to be used to pay creditors in the United Kingdom to whose credit lire had been deposited in Italy in respect of United Kingdom exports to Italy and of freight for the carriage of goods between the two countries in British ships. Mr. Colville said he hoped this arrangement would bo in full operation in a few days. As regards the Italian system of regulating imports Certain modifications were to be made which would give the system greater elasticity in various respects. At the same time provision was made in regard to the United Kingdom's import trade in certain classes of goods, such as raw wool. A second exchange of Notes was designed to facilitate exports of Newfoundland cod-fish to Italy,