§ 47. Mr. ALAN TODDasked the President of the Board of Trade whether he can state the present position of the negotiations with Turkey as to a trade agreement?
§ Lieut.-Colonel COLVILLE(Secretary, Overseas Trade Department)With your permission, Mr. Speaker, I propose to make a statement at the end of Questions.
At end of Questions:
§ Mr. TODDMay I now ask the hon. and gallant Gentleman to reply to the question which I put to him earlier?
§ Lieut.-Colonel COLVILLEI am glad to say that the negotiations with the Turkish Government have resulted in a trade and payments agreement which 1860 was signed at Angora yesterday and, pending the exchange of ratifications, enters into force provisionally on 20th June. The basis of the agreement is that the Turkish Government undertakes to make available in payment for United Kingdom goods exported to Turkey 70 per cent. of the sterling resulting from Turkish exports to the United Kingdom, the balance of 30 per cent. being retained by Turkey which has, of course, considerable payments in this country to meet in respect of freight and other invisible items. Payments in respect of Turkish exports to this country are to be made by importers into a special sterling account and full details of the procedure will be made known as widely as possible when the text of the agreement is published.
The Turkish Government have also agreed to allow United Kingdom goods (subject to certain exceptions) held up in Turkish Customs to be imported into Turkey without restriction, to allow the unrestricted importation of a considerable range of goods of interest to United Kingdom exporters and to allocate quotas to a further range of United Kingdom goods. All other United Kingdom goods will receive the same treatment under the general quota regime in force in Turkey as is accorded to other countries with which Turkey has clearing agreements. Provision is also made for compensation trade.
His Majesty's Government on their side have undertaken to reduce the duty on figs and fig cake from 10s. 6d. to 7s. per cwt. and not to impose any duty on raw mohair nor to increase the existing 10 per cent. ad valorem duty on valonia and hazel nuts, not in shell.
The agreement, when ratified, will remain in force for nine months from the 20th June, 1935, and can then or thereafter be terminated by either party giving two months' notice. Prior to the exchange of ratifications the agreement may be terminated by either party giving three months' notice.
Provision is made in the agreement for the continuance in force of the existing commercial treaty of 1930 with the exception of Article 16 of that treaty dealing with prohibitions and restrictions.
1861 The full text of the agreement, together with the schedules containing details of the United Kingdom goods receiving special treatment, will be published on 13th June.