TRADE, AGREEMENT

Evening Post, Volume CXXVIII, Issue 1, 1 July 1939, Page 7

TRADE, AGREEMENT

BRITAIN & RUMANIA

THE TERMS PUBLISHED \

The protocol signed in Bucharest at the conclusion of the AngloRumanian trade discussions, has been published as a Command Paper, says the "Daily Telegraph and Morning I Post." ! By this protocol the two Governments recognise that it is in their common i interest to develop the commercial exchanges between the two countries on a sound economic basis, and as far as possible through the normal commercial channels. | They recognise that present exchange conditions impede the sale of certain classes of United Kingdom manufactures in Rumania. To remove these impediments, and in general to faciliI tate the exchange of goods, the two Governments will work towards a freer exchange system, as and when pos- ; sible. •. In the meantime they have agreed to make certain alterations in ! the present payments agreement. \ It is also proposed to encourage the I formation of trading organisations in [Rumania and Britain respectively. Guarantees may be given by the British Government to facilitate the operation of any such organisation which may be set up in the United Kingdom. The Rumanian Government offers certain transfer facilities for shipping and insurance companies and free zone facilities in Rumanian ports. The question of improving communications between the two countries is to be examined. GUARANTEES OF UP TO £5,000,000. The protocol provides that any privileges or concessions for the development of trade between Rumania and other countries shall be available to British businesses trading in Rumania. A consultative committee is to be set up, which will meet from time to time to consider questions which adversely affect trade and payments between the two countries. The British Government will provide guarantees up to a total of £5,000,000 for the purchase of British goods or other agreed expenditure. There are three annexes to the protocol. In Annex 1 the Rumanian Government declares its intention of taking certain steps to facilitate trade in oil and timber. The British Government will be prepared to purchase for Government stocks up to 200,000 tons of Rumanian wheat from the next harvest, if available at world prices. With a view to facilitating cereal exports, part of the guarantee facilities will be set aside for financing the equipment of silos, and the British Government will give what help it can with regard to the marketing of Rumanian exports'in the United Kingdom. Annex 2 elaborates the principle that the rates of exchange between the lei and sterling should be such as to attract exports to Britain from Rumania without making the cost of British goods too high for the Rumanian market. Annex 3 gives details regarding the £5,000,000 guarantee. Subject to some further discussion, a large proportion of this sum will be spent on .armaments and the remainder on capital and consumption goods. Interest is to be at 5 per cent, per annum, and the whole amount is to be repaid overtwenty years. ;