GERMAN TRADE PAYMENTS NEGOTIATIONS WITH BRITISH AGREEMENT REACHED

FROM OUR OWN CORRESPONDENT

BERLIN, AUG. 8

The negotiations which have been proceeding in Berlin to ensure that British exporters to Germany shall not be prevented by the German foreign exchange restrictions from receiving payment for their deliveries are understood to have been concluded. The negotiations began after the Anglo-German transfer agreement was signed on July 4. This affected thc payments of German medium- and longterm debt, on which a full moratorium had previously been declared. Letters exchanged at the same time provided that negotiations should be opened on the question of comrnmercial payments.

The draft Exchange Agreement which has resulted from these negotiations provides that the Reichsbank will supply 5 per cent. of the sterling required for imports from England. The remainder of the money will be paid in marks to an account of the Bank of England at the Reichsbank. The Bank of England will pay the British exporter the balance of his account in sterling and dispose of its marks held in Berlin to British importers desirous of paying for German goods. The balance of Anglo-German trade is substantially in Germany's favour.

This agreement does not dispose of the second question raised in the letter of Sir Frederick Leith-Ross to Dr. Berger at the time of the transfer agreement-the question of the outstanding claims of British exporters in Germany, as distinct from future payments. The letter spoke of this as "an urgent question," and said the British Government was receiving an increasing volume of complaints that payments due from Germany for goods actually delivered had not been met, the main reason being the recent drastic intensification of the rationing of foreign exchange to German importers. Sir Frederick Leith-Ross said he hoped the German Government would be able " within a few days " to remedy this unfortunate situation, which would otherwise have serious effects on the trading Felations and credit possibilities of Germany.

British cotton spinners are said to have �500,000 owing to them, and British coal exporters also large sums.