TRADE PACT WELCOMED

Chronicle (Levin), 31 December 1947, Page 5

TRADE PACT WELCOMED

(N.Z.P.A

British-Russian Deal Opens Big Prospects

CovvHght)

Received Tuesday, 7 p.m. LONDON, Dec. 29. A general measure of satist'action is being expressed over the short-term trade agreement with Russia arid the fact, that further talks are scheduled for May. Mr. Ernest Jay," M.P., who is also the political correspondent of the Daily Heiald, declared that the agreeirient marks an end to the period of stagnatioii, is regarded hy hbth the British and Russian Governments as the mosu lmportant step yet taken towards the restbration of international trade, and opens up a prospect of mutual trade between the two countries on a scale . much greater than hefore the war. He points out that the 750,000 tons ut burley, maize aiid o;lts which Britain will receive befort the end of Keptefrw1 >e i* is more than double the total iiuported from all countries during the whoLe of 1946. He also points out that the British fann equipment industrv has aehieved a record output and can coutide.ntly be expected to cope with Russian orders for equipment needed to advance the Russian production. "If this is aehieved and considerable SupplieS of wheat are forthcoming fronl Russia, ' ' he says, ' ' the elfect in the world wheat markets will be far reaching. In the lirst place, Britain will be able to take major steps to reduce the adverse dollar balance. This should lead to a check in the rising pficfeS being demanded for wheat, largely because Britain, as the biggesi buver, iiks to go into every available market." Mr. Jay says the agreement guarantees employment for at least three to four years for large numbers of British engineering worlcers, and also that many bilateral agreements betAveen Britain and other countries are, expected to be speoded up as a rosult of Ihe Anglo Soviet trade pact, notably Argentina and Yugoslavia. It is pointed out by agricultural c dr I'es po nd e n la_ t ha t the iniportation of Russian feeding grain heralds a marked fetival in. British pig, poultry and eattie production. FarmerS, it is stated^ deeribed the news as "the best for many years". It will be possible, it is Statgtl, lo build up the British fioeks and herds for the lirst time since 1939. Though the price-levels for the British and Russian goods are not yet stated, it is estimated that several' huhdred millions of poundft will be involvbd in tlie exchange of goods over Ihe four-year period. The first shipment of Russian grain is expected in England on January 14. Tn a le'ader on ihe agreeihent, the Daily Iierald stated that it was pleasant tb hbar a friendiy note in the Russian radio statement on the pact. "Instead of political asperlties, tixfere was a new story of frihndb', biisinesslike cboperatiou with Britain."