Evening star., 1947-07-28
| Trade Negotiations
Stalled by Red Demand
[For New Loan Terms
BY the Assoeiotsd Press

LONDON, July 28.-Sir Stafford
Cripps told Parliament today that
British-R Russian trade treaty nego-
tiations broke down in Moscow last
week because of Soviet demands fol-
| revision of the 1941 loan agreement
Russia owes Great Britain f55,.
0oo,0Oo t$220, ,oO0, ,O00) under terms OF
the civil credit agreement
Sir Stafford, president of the
Board of Trade, said British negotia.
tors offered number of concessions
but I'VE could not 60 the whole way
the Soviet government demanded as
condition of an agreement"
The British had hoped for wheat
timber and canned fish. The Rus.
slams wanted heavy machinery, rails
and pipes. The Moscow radio as.
serted the talks broke down because
Britain would not guarantee some
deliveries and because credit terms
could not be reconciled.
Credit Demands Cause Collapse.
The British delegation, headed by
j. Harold Wilson, returned Friday
from Moscow after five weeks of in.
tensive and detailed negotiations.
Sir Stafford said the British
labor government wished to ex.
pand trade with Russia and sale
he. hoped the disappointing fail.
ure was only temporary" He die
NOT mention the Moscow radio re.
port, which a spokesman for thu
Board Of Trade called very Rus.
sian-sided."
Sir Stafford indicated success hae
been almost In sight when the talk!
collapsed on Soviet credit demands
He explained:
I'VE had succeeded in reaching
agreement on all matters withir
the trade field, including quantities
price and terms and conditions ol
shipment. Contracts for building
timber and pit wood were signee
and that for cereals was drawn ul
and practically ready for signature
agreement also was reached OF
the quantities of equipment to b.
bought by the Soviet importing
organization from British firms"
He said the Russians specifically
asked for a reduction In the rate
of interest to half of one per cent
a waving of the obligation to pay
40 per cent cash payment in respect
to all contracts not yet signed anc
for an adjustment in the terms ot
the repayment of the credit so as tt
spread the payments over II annua
installments instead of f1ve."
Longer Repayment Period.
while we were prepared to meet
the whole of their requests for re.
ducing the rate of interest to hall
of ! per cent, to waive the 40 pei
cent cash payment in respect to all
contracts not yet signed and te
60 some way at heavy cost, toward
meeting the Soviet request fol
lengthening the period of repay.
ment of all advances, we could not
go the whole way the Soviet govern.
ment demanded as a condition OF ar
agreement" he said.
"The concessions we were pre-
pared to make involved us in 6
heavy loss in the next three or foul
years and, in view of our serious
overseas financial position, we coule
not meet what the Soviet govern
ment, after moving some way tt
meet lis, stated were their minimum
terms.
TN view of the failure to agree
the position is that the trade agree
ment, which was practically com
plete in draft, was not signed and
for our part. the financial convey
ances we were prepared to offe
were withdrawn, leaving the term
of the 1941 agreement in full force.
Sir Stafford said that before tn
talks broke down, the Russian
offered to supply really substantial
quantities Of cereals over the mex
four years." beginning with 1000, ,00l