ABSTRACT
If the Anglo-German Transfer Agreement of July 1934 allowed British bondholders an opportunity to relax a little, British exporters to Germany continued to wait anxiously for assistance. This finally arrived in November of that year in the form of the Anglo-German Payments Agreement, signed after extremely difficult negotiations. Of all the economic and financial arrangements Britain made with the Third Reich, the Payments Agreement was by far the most important. British exporters experienced problems in trading with Germany before the Nazis came to power. In commenting on the extent of the injury to British firms in 1932, the Berlin Embassy referred to the possibility of a payments clearing agreement with Germany. The suspension of the exchange agreement caused immense frustration in London. Admitting that he was 'desperately gloomy' about the chaotic situation, Leith-Ross also saw the need to forestall complete control of trade by Germany.
