TRADE BLOC PLAN

Gisborne Herald, Volume LXVI, Issue 20087, 6 November 1939, Page 12

TRADE BLOC PLAN

GERMAN SPONSORSHIP NO AID TO NEUTRALS (British Official Wireless.) Rec-d. 9 a.m RUGBY, Nov. 4. In an editorial in The Times today the German scheme of “international'' trade exchange, whercbv i‘ is proposed to exclude from European trade not only Britain but overseas countries, is subjected to analysis. The editorial suggests that the fact ■)l preparation of such an elaborate scheme is strong evidence of the success!'i..l progress of the British cortraband control, for the underlying principle is that European countries can and will supply each other with ail their needs, including commodities and manufactures hitherto obtained from Britain and none of the European countries. The Times points out that an essen. tial condition of the successful scheme deo -n ■ s noon the ability of European ccungncs to be self-suflicing and selfsi ppditir.g whereas, in fact, Europe is unable t. > procure in adequate quantity such important commodities as cotton, tin. copper, rubber, petrol, and also is unable to absorb all the timber produced amongst themselves. These fundamental objections apart other questions arise, the chief of which are whether neutrals need this kind of help from Germany, whether any country except Germany would benefit, can such a scheme be founded mainly on Russian resources’ The be* help Germany could give the neutrals would be to cease sinking men- smu.Problcm of Payment

Improved and accelerated contraband control has greatly reduced delays and coal export to Scandinavia is rapidly reaching normal. Neutral benefit depends upon the German, capacity to pay. Her gold and foreign exchange are rapidly becoming exhausted, and, although she can supply goods because her readiness for war enables her to divert at present labour to export industries, neutrals are already complaining of poor quality and delayed deliveries. The barter experience of south-east-ern Europe with the Reich has made Balkan countries realise the inconvenience and danger of a system which tends to tie their economy to Germany.

Dealing with the Russian ability to provide goods, The Times says there lv.ve been many reports of developing metal production, but few statistics of an increasing export surplus are yet available. In addition, iinc-r-Gcrrnan and Russian transport difficult:- s must be overcome. The editorial concludes: “There doe.-, not seem, therefore, much in the notion of a continental bloc \vn:c.

would appeal to the neutral nati ms but trie projects should serve as a warn.iif to Britain to resume her export activities with all speed."