STEEL AGREEMENT

Taranaki Daily News, 2 May 1935, Page 5

STEEL AGREEMENT

BRITAIN JOINS CARTEL RESTRICTION ON IMPORTS WORLD MARKETS SHARED FOUR YEARS’ ENDEAVOUR British Wireless. Rugby, April 30. Representatives of the European steel cartel and of the British Iron and Steel Federation at to-day’s conference in London concluded an agreement for a period of three months that imports of products controlled by the cartel into the United Kingdom should not exceed a rate of 643,000 tons per annum and 160,750 tons for three months, with certain adjustments for other products. During this period negotiations for a long-term agreement will be actively pursued. The negotiating committees of the various sections will be appointed immediately. The British delegation undertook to request the British Government to suspend for three months the operation of the increased duties which came into effect on March 26 last.

The Daily Telegraph says that the steel decision is the climax to four years’ endeavour to safeguard the British industry. From May 1 Britain becomes virtually a member of the cartel. Its home market will ba safeguarded from dumping and it will obtain a reasonable share of the world’s neutral markets.

The proposed long-term agreement will include .a quota for British exports to countries within and outside the cartel. The decision substitutes co-operation among the steel producers of Europe for commercial warfare.

For the last year before the imposition of the British import duties on iron and steel Britain imported 950,000 tons of steel more than she exported, whereas a few years before there was a *3,000,000 tons excess of exports over imports. Much of this imported steel is sold in Britain at 25s a ton below cost.