RECIPROCAL TRADE

Poverty Bay Herald, Volume LIX, Issue 17947, 26 November 1932, Page 5

RECIPROCAL TRADE

RUSSIA AND NEW ZEALAND LARGE OIL CONTRACT (Purl in men (.my Reporter.) WELLINGTON, Ibis day. Reciprocal trade between New Zealand and Russia, giving the Dominion access to n new market, is likely to commence in the near future. Important negotiations for the importation of Russian petrol into New Zealand have been concluded between Russian Oil Products, Limited, of London, and a New Zealand company, consisting substantially of private motorists. Within a few weeks tIk 1 tirst tanker laden with petrol will arrive in the Dominion and will discharge at the four main ports. The contract involves a very large sum of money, and before it was completed the question of reciprocal trade with Russia was strongly urged. It is understood that tho Dominion Government will offer no objection to members of the commercial community or other interests arranging reciprocal trading relations with Russia, but on the general question of commercial relationships between the New Zealand Government and tho Soviet Union the attitude of the Dominion will he determined by consultation with the British Government. It is not the policy of the Soviet to arrange for overseas loans, and that Government desires to trade only with countries which will reciprocate. In view of the fact that the petrol contract will result, in very large credits being established in the Dominion, a new market will be available to primary producers of this country. It was ascertained' during the prolonged negotiations which led up to the contract, that Russia required, and was* willing to take, New Zealand wool, tallow, meat, sheepskins and hides, and agricultural machinery. Already an announcement has been made that representatives of the Soviet Government .in New Zealand arc willing to consider the purchase of Now Zealand-imulo agricultural machinery. It was pointed out to-day that in 1928-29 Russia bought direct from New Zealand wool to the value of approximately £271,000. A considerable quantity was also purchased at that time from Australia, but those purchases ceased. Tills was due to tho fact that South Africa _ and South America commenced to import Russian products, with the result that considerable purchases of wool were transferred to these countries in order to utilise the credits made available.