ANGLO SOVIET TRADE TALKS BREAK DOWN

Chronicle (Levin), 28 July 1947, Page 5

ANGLO SOVIET TRADE TALKS BREAK DOWN

" 1 Received Sunday, 7.50 p.m. LONDON, July 26. The diplomatic correspondent of the Times, reporting the breakdown of the trade talks with Russia, says that, after weeks of hard bargaining, failure seemed inevitable, but both sides made a final elfort to reach an agreement. Mr. Harokl Wilson, the leader of the British missiou, had three talks with Mr. Mikoyan, the Soviet Mijiister of Foreign Trade, 111 24 hours, but with the result that the difficulties became acute wlien the Russians demanded a higli price for wheat. There were also other outstandiiig difficulties, even wlien the two sides came nearer about wheat. It is not eertain whether the agree ment on tiinber will now be put into effect. Russia was to have supplied 50, 000 standards in return for timber cutting eipiipnient and would have suj) plied 1,000,000 tons of eereals, half ol: tliem wheat. Britain could not have paid the Russian price for wheat, because there is not enougli British lnachinery available to meet the cost of all tlie products Russia could have supplied. Tlie balance would have been pavable in sterling, convertible to dollars, and it would have caused « substantial drain 011 Britain 's dollar resources. An agreement will doubtless be sought again when the trading balance is more even. The breakdown has caused politieal disappointment. It was hoped that Britain and Russia could demonstrate that trade talks could be (leveloped between Kaslern and Western Europe, desjiite all the Russian propaganda against the Marshall proposals.