BRITAIN & RUSSIA

Wairarapa Times-Age, 14 October 1939, Page 7

BRITAIN & RUSSIA

EFFECT OF THE TRADE AGREEMENT RESUMPTION OF NORMAL DEALINGS. NO SUPPLIES FOR GERMANY. (British Official Wireless.) RUGBY, October 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 others, 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 the war interrupted intercourse between the two countries, which i ormally maintain active trade in commodities covered by agreement. It has been negotiated as a result of a fortnight’s discussions in London between the British Government and the Soviet trade delegation, and a factor which was taken into account in hastening the conclusion of the agreement was that owing to the withdrawal of export licences a number .of cargoes of timber destined for this country were held up at north Russian ports. A number of these ports become icebound by the end of November, and it is clearly necessary to get 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 Jong as possible. The agreement covers on the one hand timber previously contracted for but not delivered because the Soviet Government broke its contract on the ground that the sterling balance offered had become useless owing to depreciation and feared that it was 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 the resumption of Norwegian deliveries, the agreement rectifies a threatened temporary dislocation of supplies caused by Russia’s refusal to deliver the timber, and it is to be noted that the rubber and tin to be supplied is of equivalent normal quantity from the United Kingdom in relation to the total Soviet consumption. It is not such as to involve danger that they will be resold to Germany.