German Soviet Commercial Agreement

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The Government of the Union of Soviet Socialist Republics instructs the competent Soviet trade organizations to enter into negotiations with German organizations and enterprises designated by the Government of the German Empire for the purchase of metals and other goods by the Soviet Union from third countries, and in this agreement two objectives have been implemented. First, it brought together two complementary economies. To sustain its war economy, Germany needed raw materials— oil, manganese, grain, and timber. The Soviet Union needed manufactured products – machinery, tools, optical equipment and weapons. Although the USSR had a little more leeway and a somewhat superior negotiating position, neither country had many opportunities to obtain such materials elsewhere. Subsequent economic agreements in 1940 and 1941 therefore focused on the same types of objects. Each of the two Governments shall appoint plenipotentiaries which shall meet on the date referred to in the preceding Article. The role of these proxies would be to investigate all trade between Germany and the Union of Soviet Socialists. to take all necessary measures to implement the economic programme agreed between the Governments, in particular to balance the abovementioned percentage, and to ensure compliance with the percentage of deliveries between the German and Soviet States referred to in Article 9. In the mid-1930s, the Soviet Union made several efforts to re-establish closer contact with Germany. [9] The Soviets mainly tried to repay the debts of the previous commodity trade, while Germany tried to arm itself and the countries signed a loan agreement in 1935.

[10] The fourth credit transaction, a special transaction of 1935, ended on April 4, 1935. It made available to the Soviet Union, until 30 June 1937, 200 million German marks which were to be repaid between 1940 and 1943. The Soviet Union used 183 million German marks. Previous credit operations were liquidated, with the exception of DM 5 million, which was to be repaid in 1938. . . .