NEW AGREEMENT

Wanganui Chronicle, Volume 77, Issue 154, 2 July 1934, Page 8

NEW AGREEMENT

ANGLO-FRENCH TRADE. ALL QUOTAS RESTORED. < British Official Wireless. ) RUGBY, Jun-c 28. The new Anglo-French trade agreement, which was signed yesterday, will come into operation on July 1. It is to remain in force till April 1 next, but can thereafter be continu-ed, subject io the right of the Governments to ♦k»‘ ncunce it at any time so as to terminate three months after the end of the quarter in which notice is given. Under the agreement, the text of which was issued to-night, each country undertakes to grant most-favoured-na-tion treatment in matters of customs duties to goods which are the produce cf and consign-ed to the other apart from certain exceptions. All quotas in respect of United Kingdom goods are to be restored to 100 per cent, of the United Kingdom’s proportionate share in each trade concern-ed ns calculated upon the figures of such trade in the base period. The surtax of 20 per cent, ad valorem imposed by Britain on certain French goods by the order of February 9, 1934, is to b-e removed. Question of Quotas. The agreement also contains certain provisions regarding the operation of French quotas designed to enable United Kingdom trade to utilise fully rhe quotas allotted to it. In addition to th-ese undertakings regarding the French quotas, guarantees have been given as to the quantities of many of the more important classes of United Kingdom goods, subject to a quota in France which will be admitted from the United Kingdom during the period of agreement. In regard to the imports of United Kingdom coal into France, the French Government undertakes to maintain the full existing percentage, namely. 49.5 per cent, nf the normal quota which at present is 59-5 per cent, nf the average imports into France from all foreign sources in the period 1928 to 1930. There are, in addition to the basis percentage, certain supplementary allocations for ports, etc. Tt is laid down that these shall not be reduced in greater proportion than the normal quota and shall remain open to free competition. For metallurical coal freedom of purchase is to be maintained ns at present. These guarantees regarding coal are linked with an agreement. between United Kingdom mineowners and French coal importers regarding the purchase of pit props. Silks and Wines. On the United Kingdom side the duties on certain classes of goods imported from France which are of special importance to the latter country are fixed for the period of the agreement. The most important of these classes are silk and artificial silk and manufactures thereof. The United Kingdom duties on French brandy and sparkling wines are not to be increased during the period of rhe agreement. A further clause, of a type normal in recent French trade agreements, makes provision as to procedure if either Government should take action which upsets the equilibrium resulting from | the agreement. TRADE WITH HOLLAND OPENING NEGOTIATIONS [British Official Wireless.) RUGBY, June 29. Negotiations for a new trade agreement between Britain and the Netherlands will open at the Board of Trade on July 5. The Dutch delegation will include Doctor Hirschfeld (DirectorGeneral of Commerce and Industry), Doctor Ries (of the Ministry of Finance), and Messieurs Bonthuis and Hooft (of the Ministries of Finance and Foreign Affairs respectively), together with M. S. Jacob (Commercial Attache at the Netherlands Legation in London), and expert advisers. In view of the opening of these negotiations it may bo noted that the visible adverse balance of British trade with Holland, which stood at £18,301,000 in 1931 when imports from that country wore valued at £35,000,000, fell to £7,706,000 in 1932. In 1933 United Kingdom exports to Holland were valued at £12,480,000, re-exports at £1,975,000, and imports from Holland at £18,859,000.