The bills of exchange are to be drawn for each individual transaction and have an average currency of 7 years. The interest is 5 percent. The credit will be used to finance Soviet orders in Germany. The Soviet Union will make use of it to order the industrial products listed in schedule A of the agreement. They consist of machinery and industrial installations.
Machine tools up to the very largest dimensions form a considerable part of the deliveries.
The credit will be liquidated by Soviet raw materials, which will be selected by agreement between the two Governments. The annual interest will likewise be paid from the proceeds of Soviet merchandise, that is, from the special accounts kept in Berlin. In order that we might secure an immediate benefit from the credit agreement, it was made a condition from the beginning that the Soviet Union bind itself to the delivery, starting immediately, of certain raw materials as current business. It was possible so to arrange these raw-material commitments of the Russians that our wishes were largely met. It is a question, in particular, of lumber, cotton, feed grain, oil cake, phosphate, platinum, raw furs, petroleum, and other goods which for us have a more or less gold value.