BLOW TO NAZIS

Gisborne Herald, Volume LXVI, Issue 20111, 4 December 1939, Page 12

BLOW TO NAZIS

SEIZURE OF EXPORTS REPRISAL BY ALLIES NEEDS OF INDUSTRIES PAYMENT MEANS STOPPED (Elec. Till. Copyright—United Press Assn.) I (Uritish Official Wiroiess.) Reed. 9 a.in. RUGBY, Dec. 2. In a column compiled by its editorial stall from German and neutral sources, the weekly journal Economist makes a series of observations on German export trade activity which are of great interest in connection with the Allied decision to seize, as a reorisal for German violations of the laws of war. German exports in neutral ships. German industry, it is calculated, is dependent for 70 per cent of its raw materials on imports, which must be paid for either in goods or in free exchange. That part of Germany’s exports which is now subjected to the Allied embargo is that from which she most looked to obtain free exchange. As for trade through clearings, it is stated that Germany has been putting severe pressure on neutral nations to secure deliveries, but the results have not been very successful. “German sales to Switzerland rose sharply in October. Swiss deliveries to Germany did not,” the Economist says. Germany’s clearing debt to Switzerland, Italy, Holland, Yugoslavia, Rumania and Turkey have been reduced since the war began. Exports have been maintained or increased, but imports from these countries have fallen short. Effect on Exchange “Germany has not been able lo accumulate free exchange or to increase imports from small European neutrals. The bulk of Germany's exports have gone to reduce her debts to importing countries.” Attention is then directed to the claim freely made in Germany that trade with Europe and Soviet Russia can make up for the overseas trade lost by the Allied embargo. The first point made by the Economist is that, the claim pays no regard to the fact that vital commodities like nickel, copper, cotton and jute are lacking in those markets. As to Russia, she “has only delivered grain and fodder, but Germany also wants oilseeds, textile fabrics, manganese ore and phosphates from the Soviet. The Russian oilseed output has risen from 2,700,000 tons in 1913 to 4.700,000 lons, or twice the Reich’s annual imports in 1918. But the common Russian oilseed is a sunflower seed which is chewed in the same way as the betel and areca nut in India, and it is not available for export.” The Economist points out, moreover, that “Russian grain, oil, timber, flax and ores have commonly been exported in return directly or indirectly for rubber, tin, copper, cocoa and tea from the British Empire. Russia must maintain her place in the American and British markets in order to obtain these commodities which Germany cannot supply. The Soviet: exports cannot be diverted en bloc lo the Reich. Russia has, indeed, already offered a normal year's supply of manganese ore to the United States.”