LINKED WITH WAR DEBTS

Poverty Bay Herald, Volume LXIV, Issue 19374, 12 July 1937, Page 5

LINKED WITH WAR DEBTS

POSSIBLE TRADE PACT BRITAIN AND AMERICA WASHINGTON, July 10. ' Substantial progress towards a basis upon which to start negotiations for a reciprocal trade agreement between Britain and the United States, has been made during the past fortnight, it was learned from authoritative sources, although an official of the State Department persisted in public denials that there had been any developments.

The United Press points out that official circles in Washington regard a trade treaty with Britain as inescapably linked with war debts. Despite emphatic details by the State Department, there is a growing belief in the possibility that Britain will soon resume payments of war debts. It is pointed out that negotiation of a reciprocal treaty would be a strictly war measure for Britain since her experience in the Great War demonstrated the need for Britain to draw food from the United States. It is regarded as significant that the talk regarding a treaty has been revived immediately after the passage of the neutrality law, under the “cash, and carry” clause of which Britain would be able to buy from the United States in war-time since she has the necessary ships.