NEW ANGLO-GERMAN TRADE PLAN. FUNDS FOR EXPORTS AND UNPAID DEBT.

The danger and damage which would result from breakdown of Anglo-(;ernan trade have again been avoided. The Agreement announced in the House of Commons yesterday settles outstanding commercial debts in a reasonable way and enables trade to continue under acceptable conditions. To the achievement of that end, it was necessary that British exporters should be both assured of the liquidation of overdue payments and given guarantees that so far as good will and appropriate organisation could prevent it there would be no recurrence of the troubles which nec(,ssitated the negotiations now coneluded. The German view is that the result embodies the advantages of a clearing agreement without its disadvantages. That, broadly, is true; but if this agreement is terminated, os it can be at one month's notie, a clearing will be set up automatically. The background against which the Agreement must be judged may be briefly sketched. For months British exporters to Germany have been unable to get their credits cleared satisfactorily because exchange was not available to German debtors for the purpose. The sondermark account was not used as it should have been by the British importer, although the German importer paid into it, so that the fund became unbalanced and the machinery of payment creaked badly. The position became particularly bad for such staple articles of British export as coal and coke, herrings, yarns, lissues and textile lmanufactures. (Considered in the light of the difficulties which had to he overcome, thllie new Agreement is satisfactory. It makes provision for slums overdue, postulates a reasonable relationship between current rade and the supply of exchange to keep it liquid, leaves the British-held Dawes and Young bonds unaffected, and ofters investors in non-Reich loans better terms than before. In the House of Commons the President of the Board of Trade showed that it had seemed for some time that a clearing agreement would afford the only solution. For the alternaitive and better proposal now aceepted by both parties credit must he given to the (,German (Goverlnmenlt. The nain provisions ire that 55 per cent. of the muonthly value of hGerman exports to this countlry will be definiitly available and released from day to day for 1payment for our exports. The ratio corresponds to normal trade relationship. so that the prospect is that all United Kingdom exports to Germany will be paid for in full. Any necessary control from time to time will give special consideration to the commodities named above, so that the fuel, textile and fishing industries. which have suffered most in recent months, will be properly sa feguarded. T''ht is a welcom(ne gin. On tlie question of exports, it is important io take nole of 1le warnings lttu , rel, il h]ofh li tl , ,ish . 11 11 high quarters. lBritish exporters imust not think that they cail. wilhout risk to themselves, rush goods...