LEANING ON NEUTRALS

Wairarapa Times-Age, 23 October 1939, Page 5

LEANING ON NEUTRALS

GERMANY’S POOR PROSPECTS RAW MATERIALS SHORTAGE. EXPORTS MUCH REDUCED. (British Official Wireless.) RUGBY, October 21. The fact that Germany is organising a so-called blockade against Britain, in which the co-operation of neutral countries will be enlisted as the result of economic negotiations proceeding in Berlin, appears to be based on extravagant estimates of the productive capacity of neighbouring neutral countries to offset the effects of the British contraband control. A survey of the position appears in this week’s number of the “Economist, ’ whose objective accounts of economic trends in Germany are a regular feature. The “Economist" says: “Germany’s trade relations with neutral countries at present may be summarised as follows: Accessible neutrals arc able to supply a considerable part of Germany's imports of foodstuffs. The most important raw materials they are able to supply are iron ore, bauxite, mineral oil and timber. They cannot furnish all the bauxite and mineral oil the Reich will need, by a considerable margin, and Russia’s exports, the, value of which are being wildly exaggerated, cannot be appreciably expanded lor some time to come. “Moreover, these imports must be paid for by exports. There has been no news from neutrals that Germany has not been able to execute orders, and so long as there are no major military operations Germany should be able to maintain the production of coal. iron, steel machinery and chemi- ' cals at. say. 50 per cent of the level of 1938-39 But the 1938-39 level was much below that of 1937. and when large-scale war begins it will quickly be made difficult to make export goods in large quantities.” The “Economist” adds that considerable difficulties have already arisen in transporting goods from Balkan countries to Germany. There is a shortage of rolling stock, especially in traffic from Yugoslavia and Bulgaria to Germany. Cereal and oil transport from Rumania has had to be diverted to the Danube.