Evening star., 1932-09-20
Is NATIONS JOIN
IN DANUBE PLANS
stresa Agreement Provides
for Trade Exchange
by Preference.
Nv Cable to The Star.

9y Cable 10 Inc otaI'
VIENNA. September 20-An agree
ment has been reached at the Stresa
conference between the IS European
powers represented there which may
90 A long way toward solving the Dan
ubian problem and at last bring re-
covery in Central Europe, 1t is reported
here today.
It Is said to be the biggest event IN
this part of the world since the Credit
Anstalt crash in Austria last year
according to several organs OF the
Vienna press today. with the distinct
difference that, whereas the Creolt
Anstalt collapse provoked the wnole
present phase Of the economic Crisis,
the new Stresa rapprochement may
finally mark the turning OF the tide
to reconstruction.
THE bottom has been reached and
now it IS time for the upturn. Here
tofore there have been only restric-
tions, but now we can begin period
of Improvement" is one comment.
The Stresa agreement is complicated
In the extreme. but it can be Drleny
outlined as follows:
Get Grain Preference.
| The four agrarian states in the
Danube Basin - Hungary, Rumanla,
,Jugcslavia and Bulgaria " will enjoy
preference on their exported grain
from Austria. Czechoslovakia, SWltZer-
land and Germany. Italy also intends
to grant preference, but on slightly dlf-
ferent terms and within the quota.
The preference will vary in the case
of each country. but will amount TO
between 20 and 80 per cent.
.. France, Great Britain and per-
hans other states which import very
little Danube grain will. nevertheless,
also assist the Central European coun-
tries. A fund is to be created and ad-
ministered by the Bank for Interna-
tional Settlements to which these coun-
tries will contribute. 1t will amount
to 2 Swiss francs per quintal on wheat
IL Swiss francs per quintal On corn
and less for other cereals. At present
the Danube grain surplus is about
As 900 900 quintals (4.500,000 metric
tons) and. calculated en- this basis the
fund for this year will amount roughly
to s15000000.
g. This fund will be distributed in
two directions First, as compensation
to the industrial states Of Austria,
Czechoslovakia, Switzerland and Ger
many. and then. as further direct
contribution to the agrar1an states, IL
the measures SO far outlined do not
sufficiently raise prices to improve the
situation The fund is a sort OF export
bounty which reaches the producers
of grain only after importers have had
their sacrifices made up.
Promise Tariff Cuts.
4. In return for these favors the
agrarian states pledge themselves to
reduce tariff barriers on industrial
goods coming from the states which
grant preferences.
5. All the signatories promise to do
their utmost to relieve the currency
restrictions which now hamper trade
In their area.
Economically, the agreement is of
remarkable importance, but its politl-
cal consequences also are healthy. For
the first time the three continental
powers of France, Germany and Italy
apparently have come into definite
g. cement on Danube questions. Agree
ment has been produced by the COM
mittee of the Stresa conference, and
it must be approved by the plenary ses-
sion which is scheduled for today. 1t
IS expected to pass automatically, &C
cording to Austrian reports. Then 1t
goes to Geneva for approval.
(Copyright, 1922