Evening star., 1939-06-24

Great Britain for the exchange
OF rubber for cotton
Agreement between thes govern
ments of the United States of
America and the United Kingdom
for the exchange Of cotton and
rubber.
/. The United States Government
will supply to the government Of
the United Kingdom, delivered on
board ship, compressed to high den-
sity, at New Orleans, La, and at
other Gulf and Atlantic deep-water
ports to be agreed upon between the
two governments. 100000 bales of
raw cotton of the grades and staples
which will be specified by the gov
ernment of the United Kingdom
The United States Government will
make available in adequate quanti-
ties for such purpose cotton from
the stock on which the United
States Government has made ad-
vanceS to growers.
(a) The price will be fixed on the
basis of the average market price
as published by the Bureau of Agri-
cultural Economics for middling Is
inch cotton during the period Janu-
ary 1-June %, 1889. for spot delivery
at New Orleans, plus 0.24 cent per
pound for cost of compression and
delivery on board ship, with adjust
ments in price for other grades and
staples according to differences
above or below middling q Inch
quoted in that period.
(b) The cotton will be inspected
to determine its classification in ac-
cordance with the universal cotton
standards for grade and the official
standards of the United States for
staple, and will be accepted by ex-
perts appointed by the government
of the United Kingdom. Any dis
putes which may arise will be set
tied by boards of referees constituted
of three members, of whom one shall
be nominated by the government
Of the United Kingdom.
Samples Within Is Days.
Co Samples representing the cot
ton of the grades and staples speci-
fled by the government Of the United
Kingdom will be made available for
inspection and acceptance during a
period of six months beginning IS
days after the entry into force of
this agreement, and such inspection
and acceptance will be MADE within
reasonable time after the cotton is
so made available. Delivery at the
warehouse at the port cf sailing
with provision for free delivery on
board ship at high density will be
made within IS days after insuection
and acceptance, and storage and in
surance charges will be borne by the
United States Government for a
period of two weeks, but no more
after delivery at the warehouse at
the port of sailing.
Cd All cotton will be invoiced
and accepted on gross weight at the
time of delivery
2. The Government of the United
Kingdom will supply to the Govern
ment of the United States, delivered
on board ship at Singapore and, by
agreement between the two Gov
ernments, at other convenient ports,
rubber in bales, of the grades which
will be specified by the Government
OF the United States, to a value
equivalent to that of the total value
of the cotton to be supplied in ac-
cordance with paragraph of this
agreement. In determining such
equivalent value, the rate of ex-
change between straits settlements
dollars and and United States dol
lars shall be deemed to be the aver
age of the buying rate during the
period January 1st-June 23rd, 1899,
in the New York market, at noon,
for cable transfers payable in straits
settlements dollars, as certified by
the Federal Reserve Bank to the
Secretary of the United States
Treasury and published in Treasury
decisions.
(A) The quantity of rubber will