CREDIT TO RUSSIA.

Press, Volume LXVIII, Issue 20488, 5 March 1932, Page 15

CREDIT TO RUSSIA.

BRITAIN'S POLICY. TARIFF BARGAINING FAVOURED. (UKJTED PRES3 ASSOCIATION —B* ELECTRIC TELEGRAPH —COPYRIGHT.) LONDON, March 3. in the House of Commons * Major D. J. Colville (Parliamentary Secretary to the Board, of Trade), replying to Labour criticism of the reduction of export credits in respect of sales to Russia, said the Departmental Advisorv Committee did not favour the continuance of long credits because the Soviet had been playing one country against another to get longer credits. Last summer the Government had agreed to extend the heavy industries credits to ltussia to 30 months, upon the Soviet undertaking to place £6,000,000 worth of orders here. Tho lirst National Government,, owing to the financial crisis, had decided that the guarantees must henceforth, be reduced to 12 months, but this had not applied till recently. "When tbe Russian £6,000,000 programme was completed the Soviet had been informed that the position of British trade with Russia was not satisfactory, in view of our adverse trade balanc®. During the past five years Britain imported £135,600,000 •worth of Russian goods, for which we paid cash; and only exported £25,000,000 to Russia, for which we allowed extended credit. The Government believed it would be more helpful under the tariff scheme to bargain with Russia, than offer extended credit.