BRITAIN AND ARGENTINA

New Zealand Herald, Volume LXXIII, Issue 22584, 24 November 1936, Page 8

BRITAIN AND ARGENTINA

Important interests centre in the new trade agreement between Britain and Argentina, negotiations for which aro reported to have reached, at long last, the final stage. The previous agreement, concluded in May, 1933, was denounced by Britain on July 7 last and expired on November 7. The making of a new bargain has proved a difficult and tedious business. Argentina naturally wished to make the best possible terms for her great meat trade but in the end has had to accept, so it has been reported, fairly severe quantitative restrictions on her exports of beef, mutton and lamb in addition to a new impost on beef. This is expected to be fixed at Jd per lb. and will compensate the British Exchequer in part for the subsidy paid to Home beef producers. Argentina's meat trade has thus been saddled with both levy and quota. At the same time the British Government insisted that Argentina should spend more of the London credits earned by her exports on British .manufactures and British coal. No doubt some stipulations would also be made concerning the servicing of Argentina's debt of £120,000,000 to British bondholders. It is believed that this part of the bargain has proved more difficult to conclude than that relating to meat and other primary produc . The Argentine Government, like the Danish, exercises a strict control over foreign credits and therefore has not been in a position to disclaim responsibility when Britain pressed for a larger allocation to her manufacturers, coal producers and bondholders.