GERMAN RESTRICTIONS

Taranaki Daily News, 17 September 1934, Page 5

GERMAN RESTRICTIONS

ENGLAND’S CONSIDERATION

NEGOTIATION ANTICIPATED

TWO IMPORTANT CHANGES

EXCHANGES AND IMPORTS

British Official Wireless. Rec. 5 p.m. Rugby, Sept. 14. The effect of the recent decrees issued by the German Minister of Economics, Herr Schacht, has been subjected to a close examination with particular reference to their bearing on the Anglo-Ger-man exchange agreement, which comes into operation on August 20. In accordance with the decrees full control will be exercised over all imports into Germany from September 24. Machinery for the operation of the control provides for estimates being made in advance of the amount of foreign exchange likely to be available each month, and the limitation of that month’s imports is strictly controlled by the issue of permits so that payments may be made within the estimate. Two important changes are introduced by the new system. Firstly the control applies not only, as in the past, to raw materials but to imports generally. Secondly, the new machinery will involve the abolition of general exchange permits which formed the basis of the recent Anglo-German agreement. The Foreign Office announces that it is agreed between the British and German Governments that a delegation headed by Sir Leith Ross will proceed immediately to Berlin to instigate discussions on the commercial and financial relations of the two countries as affected by the new German machinery for the control of imports and the allocation of foreign exchange. The import restrictions imposed in the decrees recently announced by Dr. Schacht, president of the Reichsbank and Minister of Economics, are being carefully studied by appropriate Government Departments in London. “The object of negotiations would be to seek to define an entirely new basis for the whole of the commercial relations between Germany and the United Kingdom," says the Daily Telegraph. t In connection with the discussion of the broader issue, attention is directed to the decision of the Lancashire cotton spinners to reject the German proposals for a settlement of their outstanding commercial debts. The decision caused but little surprise in the newspapers, reflecting the commercial opinion, as the proposals generally are regarded as most unsatisfactory. The wool, cotton and coal industries have appointed a deputation to see Mr. Walter Runciman, president of the Board of Trade, on Monday regarding Germany’s debts.