GERMANY AND THE EMPIRE

Dominion, Volume 32, Issue 148, 18 March 1939, Page 12

GERMANY AND THE EMPIRE

Plea To Australia And N.Z. For More Trade

POLITICAL BARRIERS REGRETTED Diversion From Britain And U.S.A. Urged By Telegraph.—Press Assn.—Copyright. BERLIN, March 16. Political considerations rather than strictly economic difficulties are at present preventing extension of Australian and New Zealand trade with Germany, declared, Di. Otto Rieck, secretary of the British Dominions section of the Ministry of Economics, in a special interview today with the Australian Associated Press. This political approach to the question must be alteied, he said, before a freer exchange of goods can be hoped for. Germany is most ready and anxious to build up its exports, implying a corresponding increase in its put chases fiom Australia and New Zealand.

“We fully appreciate the nature of Australia’s aud New Zealand’s economic ties with Great Britain,” said Dr. Rieck, “and that it is necessary for them to maintain their London balances in order to service their debts; but we feel that there is a potential residue of trade over and above the existing volume which Australia and New Zealand could justifiaoly divert to Germany.

“Governed by Sentiment.”

••It seems that much Australian, and New Zealand trade with Great Britain i s governed by sentiment. We believe that Great Britain will not object i the Dominions look further afield and give Germany a share of their increasing primary production. There is no reason that this should vitally cut across Great Britain’s interests, and it would greatly benefit the Dominions. Dr. Rieck said he felt that Australia and New Zealand might also justifiably transfer to Germany some of their trade with the United States which lor years had enjoyed most favourable balances.

Germany, said Dr. Rieck, was able to provide nearly everything that the United States was selling, and might even enter the motor-car market to the advantage of Australia and New Zealand when the “people's car” was in full production. Such a diversion would at least mean that the Dominions would be enabled to pay,for their imports directly by their exports. Wool Purchases. “There is no reason to believe that the Dominions need yet fear any decline in Germany’s purchases of wool because of the development.of synthetic fibres,” continued Dr. Rieck. ‘Germany still needs large quantities of wool, but an expansion in its buying is dependent on Germany’s requirements of all raw materials. "The existing disposition of raw materials itnd sources of supply, also Germany’s internal economy, demand the maintenance of a careful relationship between the volumes of the various imports. “However, the Dominions should not forget that Germany is a good market for a wide range of primary products and metals. Pact With South Africa. “The increase in South Africa’s trade had been threefold since the conclusion of the barter agreement. In proof of this, Australian wheat unfortunately can no longer be bought because of Die transference of purchases to Canada aud South America under treaties.”

Frequent misrepresentation of Germany’s case for a place in the world’s markets was most regrettable, said Dr. Rieck. She was anxious to contribute to a political and economic settlement, but this was most difficult while a deliberate misunderstanding of her aims was fostered. Germany did not hope, or wish, to destroy trade between Britain and the Dominions, but she felt it would be more equitable to spread it as much as possible. Dr. Rieck was speaking on behalf of Herr Bergeinann, a director of the Reieh'bank who had been called to Hamburg. i

DIFFICULTIES NOT POLITICAL

Comment By Australian Prime Minister (Received March 17, 11.30 p.m.) CANBERRA, March 17. If Germany is prepared to enter into a trade agreement with Australia on a similar basis to other countries there will be no political difficulties in the way, said the Prime Minister, Mr. Lyons, referring to Dr Rieck’s statement. , Mr. Lyons added that Dr. Rieck Had completely misinterpreted the facts as far as Australia was concerned. Australia’s approach to the matter had been on a basis of economics and was distinct from political considerations.