ECONOMIC WARFARE

Waikato Times, Volume 125, Issue 20950, 1 November 1939, Page 6

ECONOMIC WARFARE

Economic warfare on a gigantic scale is being waged in Europe, and its results may be even more important than feats of arms. The campaign is divided into two groups, with Germany leading one and Britain fhe other. Each leading nation is attempting to isolate the other. Their weapons differ. Although Britain has the great initial advantage that she can pay for what she buys with real money against Germany's less attractive barter methods, Germany has hitherto employed the weapon of fear with telling results in some instances. A customer who trades through fear, however, is not a good customer, and sooner or later he will seize the opportunity to return to those who deal according to the rules of ordinary commercial morality. Competition is especially fierce in Scandinavian and Baltic countries, where the interference of Russia has introduced a new element which is not wholly to the advantage of Germany. Wartime action did succeed for a time in cutting off supplies for Britain from Denmark, Latvia and other countries, but now Denmark is to resume shipments of bacon and dairy produce which Germany sought to monopolise. Denmark has been overawed by her powerful neighbour. She has made a “gentleman’s agreement” with Germany, agreeing to supply certain quantities of foodstuffs to Germany, while Germany undertakes not to interfere with Danish shipments to Britain. Payment by Germany for her share of the trade is apparently as doubtful as her abstenance from torpedoing Danish shipments to Britain.

Germany’s economic plan covers four years and is designed to embrace the economic life of Russia, Italy, the Balkans and Scandinavian States. Russia’s ousting of German influence from the Baltic, however, has apparently succeeded in opening to Britain avenues of trade which Germany formerly claimed as her own. One result is expected to be a British agreement with Latvia for an exchange of trade. Germany’s hopes of becoming the economic centre of an influential block of neutral nations might have had some chance of realisation if Germany were not almost bankrupt of foreign exchange and if her political background could inspire confidence rather than fear.