TRADE WITH RUSSIA

Poverty Bay Herald, Volume LXII, Issue 18900, 30 December 1935, Page 2

TRADE WITH RUSSIA

QUESTION OF CREDITS TSARIST DEBTS PROBLEM LONDON, Nov. 23. There have been 'reports this week that discussions are proceeding with a view to the raising of a substantial loan for Soviet Russia, and a warning- has been issued, semi-officially, that these should be treated with reserve. Russia’s credit has improved 1 considerably in recent years owing to the promptness with which the Soviet Government has repaid the short-term crediis that have been granted to her at various times. In the. aggregate, these credits amounted to a very large sum. But Russia’s need for short-term credits has been much reduced owing to the development of her exports, and the high price received for gold, of which she is an ini2>ortant producer. The trade balance between Britain and Russia is heavily in Russia’s favor. In the first nine;months of this year, British imports from Russia amounted to £13,800,CC0, against £12,700,000 in 1534. while British exports to Russia fell from £2.800,000 to £2,700,000. British exports, however, would he stimulated, it is considered, if Russia could raise long-term loans in Britain for capital development purposes. But the default on Tsarist debts bars the wav to long-term loans, and it is the possibility of arranging a settlement of their old debts which is now stated to be receiving the attention of the various interested parties. This question has been explored from. time 1° time in the past, without any progress being made, arid it is by no means certain that the discussions on this occasion may produce a different result. For these reasons, warnings are issued to treat reports of large long-term loans to the Soviet .with reserve.