ECONOMIC WAR

Wairarapa Times-Age, 4 December 1939, Page 3

ECONOMIC WAR

———♦ GERMAN DIFFICULTIES EFFECT OF ALLIED SEIZURE OF EXPORTS. BOUND TO BE FELT HEAVILY. . (British Official Wireless.) RUGBY, December 3. In a column compiled by its editorial staff 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 reprisal 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 exports which is now subjected to the 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 neutrals to secure deliveries, but results have not been very successful. “German sales to Switzerland rose sharply in October,” says the “Economist.” “Swiss deliveries to Germany did not. Germany's clearing debt to Switzerland, Italy, Holland, Yugoslavia, Rumania and Turkey has been reduced since the war began. Exports have been maintained or increased, but imports from these countries have fallen short. “Germany has not been able to accumulate free exchange or increase imports from the small European neutrals. The bulk of Germany’s exports has 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 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 oil seeds, textile, fibres, manganese ore and phosphates from the Soviet. The output of Russian oil-seeds has risen from 2,700,000 tons in 1913 to 4,700,000, or twice the Reich’s annual imports, in 1918. But the common Russian oil-seed is 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. “Soviet exports cannot be diverted en bloc to the Reich. Russia has indeed already offered a normal year's supply of manganese ore to the United States.”