COMMERCIAL AGREEMENT

Hokitika Guardian, 19 April 1930, Page 6

COMMERCIAL AGREEMENT

BETWEEN BRITAIN AND SOVIET

(United Press Association—Jßy Electric

Telegraph—Copyright)

RUGBY, April 16

Air A. Henderson and M. Sokuluikolf, Russian Ambassador, this afternoon signed in the Cabinet room ol the Foreign Office, a temporary commercial agreement between Russian and the British Governments. It is agreed the parties accord most iuvoured nation treatment to subjects, citizens, judicial persons, national produce and maim fact vires of each other. The following are extractions: Firstly Special provisions relating to trade continued in Treaties concluded by the Soviet Union vith States which in August, 1914, formed ail integral part of the former Russian Empire and with- Continental border States in Asia.

Secondly:—Rights are accorded to any third country forming part of the customs '.union with the Soviet Union.

Thirdly:—Privileges accorded by-the Soviet Union to border States with respect to local trade between inhabitants on tbe frontier zones. The British Government agree, in view of the state of monopoly of foreign trade in Russia to accord to the Soviet Government the right to establish in Great Britain a trade delegation consisting of a trade representative and his two deputies 1 Grilling part of the Soviet Embassy., These three persons aro to he accorded ail diplomatic privileges End immunities and a similar immunity shall attach to the offices occupied by the trade delegation and used exclusively for its commercial functions, which shall be to fnilitate and encourage the development of trade between the two countries, and to represent the interests of the Soviet Union. All that pertains to trade delegation shall he responsible for all transactions concluded biy 'the trade representative and persons authorised by him, but not for acts of state or economic organisations except when such responsibility has' been clearly accepted by the trade representative. The names of trade representative and persons employed to represent them shall be periodially published in- the Board of Trade Journal.

Any question arising from commercial transactions entered into in this country by the trade delegation shall be settled by British courts. National treatment is accorded in the agreement to vessels, cargoes and passengers of each country and most favoured nation treatment.

As regards to coasting trade, subject to reservation, of the right of sabotage as regards trade between the two ports on the same coast excluded from these previsions are fishing rights, immigrants, emigrants and pilgrims and ships cargoes and passengers registered in British sellgoverning Dominions provisions ol agreement may be mutual. The agreement will be extended to the British self-governing Dominions by a simple exchange of notes and they may also be extended on condition of reciprocity to any of the British colonies, possessions, protectorates and mandated territories, if 4he Soviet Government are so notified by the British Ambasndor at Moscow. In this event, the Soviet trading organisations may send thither agents acodofcablo to 1 the Government concerned to carry out commercial transactions. Such agents shall have no diplomatic or consular privileges or immunities. It is provided that if Russian produce is accorded most favoured nation treatment m British Dominions and other overseas territories. .which have nevertheless not adhered to the agreement the Soviet Union will accord reciprocity, reserving itself the right to denounce tin- - provision in respect ol any Dominion or India.

The agreement shall remain in force till the entry into force of a commercial treaty subject to the right of either party to denounce it or any arrangements entered into between tin' Soviet Government and British Dominions or other oversells territories at six months notice. In an annexed protocol’ it is staled the contracting parties are animated by an intention to eliminate I rom their economic relations all lorm ni discrimination and will bo guid'd only by commercial and financial consideration. They will adopt, no legislative or administrative action such as would place the trade of the other party in a position of inferiority to that of any other foreign country. Tn accordance with the above principle, trade between Britain and Russia shall lie eligible lor consideration on the same basis as trade he tween Britain and other fore bin countries in connection with any legislative < i administrative measures taken by the British Government for granting of credits to facilitate s-n-h trade.

The signature of .the agreement was accompanied by a, declaration b\ Mr H enderson tha t the I n ion oi South Africa and Irish Free State were excluded from the provisions ielating to the Dominions.