SOVIET TREATY

Gisborne Herald, Volume LXVI, Issue 20067, 13 October 1939, Page 7

SOVIET TREATY

TRADE WITH BRITAIN BROADER BASIS PLANNED DIFFICULTIES OVERCOME MORE PACTS PROBABLE (Elec. Tel. Copyright—United Press Assn.) (British Official Wireless.) Reed. 10 a.m. RUGBY, Oct. 12. The announcement that trade relations between Britain and Russia are to be reinforced by the resumption of the export of Russian timber to Britain against consignments of tin and rubber which Britain some time ago contracted to sell to her, is likely to be the forerunner of other agreements, perhaps operated on a similar basis, which will broaden the channel of trading intercourse between the two countries. The agreement is entirely commercial. but the significance of its completion in the present circumstances is noted in the press which recalls that the outbreak of war interrupted the intercourse between the two countries, which normally maintain active trade in the commodities covered by the agreement. lit has been negotiated as a result of a fortnight’s negotiations in London between the British Government and the Soviet trade delegation, and a factor taken into account in hastening the conclusion of the agreement was that owing to the withdrawal of export licenses a number of cargoes of timber destined for this country were held up at north Russian ports. A number of these ports become ice,bound by the end of 'November, and it was clearly necessary to get the cargoes of timber out while the ports remain open to shipping. The Soviet Government will probably provide icebreakers to keep the northern ports open as long as possible. Previous Contracts The agreement covers, on the one hand, timber previously contracted for but not delivered because the Soviet Government broke the contract on the grounds that the sterling balance offered had become useless owing to depreciation and feared that it would be unable to obtain commodities required from the United Kingdom owing to export restrictions, and, on the other hand, rubber and tin of which substantial surpluses are held in Britain.

From the British point of view, pending a resumption of Norwegian deliveries, the agreement rectifies a threatened temporary dislocation of supplies caused by Russia’s refusal to deliver timber, and it is to be noted that the rubber and tin to be supplied is of the equivalent normal quantity from the United Kingdom in relation to the total Soviet consumption. It is not such as’ to involve a danger that they will be resold to Germany.