SPECIAL TRADE SYSTEM

Stratford Evening Post, Volume III, Issue 348, 1 May 1935, Page 5

SPECIAL TRADE SYSTEM

ENGLAND AND ITALY

CONTRA METHODS TO BE USED EXTENSIVELY

British Official Wireless,

Rugby, April 29.

Mr. O. J. Colville, Under-Secretary for Overseas Trade, announced in the House of Commons to-day that as a result of the Anglo-Italian negotiations it was agreed that the best course for the present was to continue with certain adaptations the provisional arrangement which was concluded on March 18.

Either Government has the right to terminate the arrangement at the end of any month from June onwards or propose new negotiations for a definite agreement. The arrangements now made, which come into force on May 1, are set out in an exchange of notes.

Mr. Colville drew particular attention to a feature of the agreement whereby the Italian Government will arrange that all persons in Great Britain from whom payments are due to persons in Italy, in respect to Italian goods exported to the United Kingdom on or after March 18, 1935, and of freights earned bfr- Italian ships carrying goods between the two countries and due on or after May 1, 1935, shall be authorised by creditors in Italy to make such payments to a special sterling account at the Bank of England into which all money received from Italian exports to the United Kingdom and from freights referred to above are to be paid. This special sterling account is to be used to pay creditors in the United Kingdom to whose credit lire has been deposited in Italy in respect to United Kingdom exports l o Italy and freight for carriage of goods between the two countries in British ships. He hoped this arrangement would be in fall operation in ** few days’ lime. As regards the Italian system of regulating imports, certain modifications are to be made which give the system greater elasticity in various respects and at the same time provision is made in regard to the United Kingdom import trade in certain classes of goods such as raw wool, which is subject to special treatment in Italy. The second exchange of notes is designed to facilitate exports of Newfoundland ccd fish to Italy.