TRADE RELATIONS

Otago Daily Times, Issue 23939, 14 October 1939, Page 11

TRADE RELATIONS

«. BRITAIN AND RUSSIA AGREEMENT COMPLETED RESUMPTION OF EXPORTS (British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY, Oct. 12. The announcement that the trade relations between Britain and Russia are to be reinforced by the resumption of the export of Russian timber to Britain against consignments of tin and rubber which Britain some time ago contracted to sell to her, is likely to be the forerunner of others, perhaps operated on a similar basis, which will broaden the channel of trading intercourse between the two countries.

The agreement is entirely commercial, but the significance of its completion in the present circumstances is noted in the press, which recalls that the outbreak of the war interrupted intercourse between the two countries, which normally maintain an active trade in the commodities covered by the agreement. It has been completed as the result of a fortnight's negotiations in London between the British Government and the Soviet trade delegation, and a factor taken into account in hastening the conclusion of the agreement was that, owing to the withdrawal of export licences, a number of cargoes of timber destined for this country were held up at North Russian ports. A number of these ports become icebound by the end of November, and it was clearly necessary to get the cargoes of timber out while the ports remain open to shipping. The Soviet Government will probably provide ice-breakers to keep the northern ports open as long as possible. Timber From Russia The agreement covers on the one hand timber previously contracted for but not delivered, because the Soviet Government broke the contract on the grounds that the sterling balance offered had become useless owing to depreciation and feared that it would be unable to obtain the commodities required from the United Kingdom owing to the export restrictions, and on the other hand rubber and tin, of which substantial surpluses are, held in Britain. From the British point of view, pending the resumption of Norwegian deliveries, the agreement rectifies the threatened temporary dislocation of supplies caused by Russia's refusal to deliver timber, and it is to be noted that the rubber and tin to be supplied is of an equivalent normal quantity from the United Kingdom in relation to the total Soviet consumption. It is not such as to involve a danger that they might be resold to Germany. THE FINNISH ARMY VIRTUALLY AT FULL STRENGTH LONDON, Oct. 13. ' (Received Oct. 13, at 11.30 p.m.) The Helsinki correspondent of the British United Press says is authoritatively stated Finland now has 300,000 men under arms. This is virtually the full strength of the Finnish Army, but it is estimated that another 150,000 volunteers could be mobilised if necessary. EMPIRE AIR SCHEME AUSTRALIA'S CONTRIBUTION SYDNEY, Oct. 13. (Received Oct. 13, at 11.30 p.m.) Australia will place no limit on the number of men to be supplied under the Empire air training scheme, declared the Minister of Civil Aviation (Mr J. V. Fairbairn) to-day "Our contribution to the defence of the Empire will be limited onlv by the number of enlistments and our ability to train recruits, he said. aerialTwarfare THE BRITISH POLICY NEW YORK, Oct. 12. Lord Marley has arrived here, and in an interview said Britain would bomb German industrial centres only if the Reich air force attacked London. . " We have too great a respect for human lives, but if Hitler starts we will have to go on," he said. You see, nobody yet knows the possibilities of aerial warfare, and I think both sides are hesitating to commence. There is a possibility that we will have a limited kind of war —just using armies." peaoTprqposals THE ITALIAN VIEWS ROME, Oct. 12. Sienor Bastianini left for London. He saw Signor Mussolini before his departure, II Duce giving him an aide memoire setting out the Italian views with respect to the peace proposals and an international conference.