Soviet Dumping

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BRITISH TT "DE AND RUSSIA

[EWING the luxurious offices and warehouses of
Soviet trading departments in Britain (and elsewhere),
 the impression is gained that large sums of
Soviet money are employed in these activities. Nothing is
further from the truth. These large departments are run
mainly on British money.
An investigation made some time ago into the methods
by which Soviet trade is financed in Britain, disclosed the
fact that Soviet turnover capital “ used in the British section
 of Soviet foreign trade ”’ amounted to about £3,000,000.
More interesting still was the fact that at the time of the
investigation Soviet exports to this country were financed
by English banks to the extent of one quarter of the total
value, a further quarter was obtained as advances from
brokers, and a third of the remainder was derived from
‘ other British sources.”
This shows that Moscow manages to extract at least 66
per cent. of the value of goods ultimately dumped in this
country long before they reach these shores. In the total
trade turnover between Moscow and London the amount
employed was shown as exceeding £8,000,000, of which
“ England provided 62 to 63 per cent.” This amount was
turned over six times a year.
Since the latest resumption of relations between the two
countries in 1929, both the amount of credit and advances
has increased ; the export credit scheme alone provided
£4,000,000 to £5,000,000 worth of credits during a few
months. And as credits increase, so the Soviet share in the
financing of their own trade diminishes. It is thus seen that
with little or no outlay of Soviet money, Moscow has been
able to create a huge business under the protection of
English law and endowed with special privileges, by means of