GRIP OF GERMANS

Evening Post, Volume CXXVI, Issue 136, 6 December 1938, Page 9

GRIP OF GERMANS

ON TRADE OF THE CZECHS

Grave anxieties are entertained in Czech industrial circles concerning the consequences of the lifting of the Customs barrier between the present Czechoslovakia and the Sudeten areas annexed by Germany, says'the Prague correspondent of the "Daily Telegraph and Morning Post" on October 28. Itiis pointed out that not only does this make it possible for Germany ta flood Czechoslovakia with her products, but also for German industry to draw away from Czechoslovakia, the raw materials which it needs but cannot pay for in foreign exchange, via the Sudeten area.

The result may well be that Czechoslovak firms will obtain foreign exchange from the national bank to buy raw materials. The raw materials will then be exported through the Sudeten areas to Germany.

Under the arrangement for lifting the Customs barrier, to which Czechoslovakia in her present condition of helplessness has been compelled to agree, Germany will not have to pay for these raw materials, but will set them off against imports through the special clearing arrangements instituted.

There has thus been opened a hole in the new Czechoslovak frontien through which, unless rigorous measures are taken to check it, the > land may well be drained of raw materials, including war materials, for Gei* many's benefit.