NORTHERN NEUTRALS

Wairarapa Times-Age, 28 March 1940, Page 7

NORTHERN NEUTRALS

SEVERE ECONOMIC EFFECTS OF WAR CONCERN IN DENMARK. SWEDEN ALSO FEELING PINCH. By Telegraph—Press Association—Copyright. LONDON, March 27. The economic impact of the war on the Northern neutrals is reflected in Denmark’s imposition of taxes to combat her increasingly adverse' trade balance, and also an announcement by Sweden of measures to check the alarming drainage of foreign exchange. The Danish President, Mr Stauning, in Parliament expressed the nation's deep sorrow and concern at the sinking of the Danish ships, which is threatening the nation’s economy. “The first seven months of the war has caused great economic difficulties,” Mr Stauning continued. “The rise in prices of imported goods has exceeded the rise in export prices, resulting in an increasingly unfavourable trade balance. The financial situation has deteriorated because of the large expenditure on defence and also the measures ensuring our neutrality.” Mr Stauning said that the financial year 1940-41 will probably end in a deficit of £10,000,000. It is officially announced in Sweden that coffee and tea are being rationed and about 200 luxury items subjected to Government control from today in order to conserve foreign exchange. The Swedish currency reserves have shrunk by £41.000.000 since the outbreak of the war, representing onethird. The commodities now subject to the regulation represent 71 per cent of the total imports.