RUSSIAN GOLD

Poverty Bay Herald, Volume LXII, Issue 18661, 22 March 1935, Page 9

RUSSIAN GOLD

SAB-MARKED FOR LONDON INFLUENCE ON TRADE LONDON, March 3. • . Important developments in Anglo-, ; Bussion trade are expected to follow . ); upon the recent decision of the Soviet Government to suspend gold consignments to the United States, and henceforward to make England the main "'- destination of Russian gold. It is expected that this will enable the Soviet to increase its orders for Brit- • ink machinery and plant on . a cash basis, and. also to pave the way for the negotiation of a five-year loan in

(London. This loan would have to be i sanctioned by the Treasury, and sanction would be granted only on condition of a definite guarantee that both interest and sinking fund payments •would be met in gold. It is understood that the Soviet Government is prepared to give that guarantee. Should the proposed loan be floated, at is claimed that orders for goods, ineluding industrial equipment of all kinds, would immediately be placed with* British firms on a sufficiently extensive scale to absorb 250,000 of the unemployed. The possibility of thus providing work that is urgently needed may influence the attitude of the Treasury, which, however, will be mainly guided by the opinion of bankers, some of whom it is reported view , the project with favor. The opportunity for Britain to obtain useful contracts from Russia has sprung from the breakdown of negotiations between the United States and the Soviet. It is possible, however, that there will bo a fresh approach to America in the near future. Meanwhile, both France and Italy are advancing longer credits for Russian pur ; poses than are available in England, arid at'a cheaper rate. ..In this regard the Soviet recently refused to go on paying the high interest rates demanded by the export credits department. On '•' short-term credits for financing Russian purchases of British goods the ■ department was charging 7 per cent on Russian trade bills, which it guaranteed up to a maximum of 75 per cent. 'Cheaper credit facilities have been expedited by .some of the joint stock banks/ . ■ • : '.'