The trend of British negotiations with Spain, where she is in an extremely favourable bargaining posi-non, are regarded by exporters as indicative of the trade poneies io be followed in other word markets Which are of more importance io American exporters than Spain.
In commenting on these proposals recently, foreign traders explained that part of the sterling balances acquired by Spain in the past were spent in the United States or manufactured goods. With Franco's government in desperate need of exchange for rehabilitating the country, the loss of sterling balances would remove Spain definitely from the list Of American market they said, Franco" has already concluded a balanced trade agreement with France under which oranges, iron ore, pyrites, mercury, lead and zinc are being exchanged for wheat and other grains, Phosphates, automobiles and misceltaneous manufactured items.
Automobile manufacturers here expect to feel the pinch of the barter trade arrangements in the near future. They were endeavouring to confirm reports that the Franco Government already has taken control over all automotive imports and will dictate not only the number and types of cars to be imported but will fix the prices at which they are to be sold. With such powers, it was held, France could manipulate the internal market to conform to any barter deals made with other nations. It was predicted that similar contro: soon would be assumed over all types of foreign-made products.
See Barter Pound Plan Ready In markets closer to American interests than Spain the suspicion that England is planning to utilize blocked pounds in her dealings with Argentina, Paraguay, Uruguay and other countries persists among foreign traders despite frequent denials. Ex porters are convinced that the framework for barter pounds has already been set up in England and that when the time appears right Britain will announce that sterling balances, acquired by Argentina and other nations enjoying favourable trade balances with her, must be spent within the empire for British goods. The proposals, it is argued, will be sugar coated by attractive pricing of finished goods with which United States manufacturers compete.
In Cuba, where England has suspended tobacco purchases as she has in the United States, pressure to find a means by which the British trade can be revived is building up, and talk of a clearing agreement has been heard. In Peru the cessation of long-staple cotton purchases by England hás had a serious effect and that market may be ripe for a trade deal in the future, although no reports along that line have been heard yet, exporters said.
Text read from the printed page and cleaned; old type leaves the occasional error.