TRADE BY BARTER

Bay of Plenty Beacon, Volume 2, Issue 108, 10 January 1940, Page 6

TRADE BY BARTER

CONCERN IN SOUTH AMERICAN REPUBLICS DISILLUSIONED PKOPLF

Several South American republics are completely disillusioned by their experiment in barter wilh the totalitarian States, and are seeking an opportunity to return to the multilateral system in international trade Some of them have become so involved by their bilateral agreements that they plan to establish the quota system as the first step towards their release (says a Buenos Aires message). In some cases, notably Uruguay, the authorities wish to enter into new trade agreements "with Great Britain and the United States, without involving reprisals from totalitarian count ies. Germany supplied 20 per cent, of Uruguay's imports, Great Britain 19 per cent, the United States -I percent. Great Britain supplied 17 per cent of Uruguay's exports, Germany R» per cent, the United States- 8 per cent. Uruguay charges that the barter system developed into a j-'ranglehold. Ilalj', For example, increased the price of jule 2.") percent overnight, after signing a barter agreement with Uruguay. Similarly it was slated in Montevideo, Germany sold many products in Uruguaj' at price 10 to 15 per cent higher than German traders charged for the same articles in Argentina. On the other hand, South American countries have been com pi li 114 useful revenue from profits in their dealings in foreign exchange under arrangements «-;et up in the bilateral agreements. In Argentina and Uruguay, these profits averaged 2~> percent on Jill import trade. Representatives of finance ministers hav • been faking a prominent part in negotiating new ua agreem mis. and wish to mriinfain these prca'il.s. To this: problem they wr.r.ld !ik • Great Britain *<nd 'he Unite-.! SL-kp:--to 'In:J an answer.