NEW GERMAN SCHEME

Waikato Times, Volume 125, Issue 20954, 6 November 1939, Page 8

NEW GERMAN SCHEME

THE CONTRABAND CONTROL CUTTING OUT BRITAIN (United Press Assn.—Elec. Tel. Copyright) LONDON, Nov. 4 A German scheme of “international” trade exchange, whereby it is proposed to exclude from European trade not only Britain, but overseas countries, is subjected to analysis in an editorial article in the Times. The article suggests that the fact of the preparation of such an elaborate scheme is strong evidence of the successful progress of the British contraband control, for the underlying principle is that European countries can and will supply each other with all needs, including commodities and manufactures, hitherto obtained from Britain. The Times points out that the essential condition for a successful scheme depends upon the ability of European countries to be selfsufficing and self-supporting, whereas in fact Europe is not able to procure in adequate quantities such important commodities as cotton, tin, copper, rubber and petrol, and also is not able to absorb all the timber produced among themselves. Questions to be Answered These fundamental objections apart, other questions arise. The chief ones are: Whether neutrals need this kind of help from Germany, whether any country except Germany would benefit, can such a scheme be founded mainly on Russian resources. The best help Germany could give neutrals would be to cease sinking their ships. Improved and accelerated contraband control has greatly reduced delays, and the coal export to Scandinavia is rapidly reaching normal, tyeutral benefit depends upon German capacity to pay. Her gold and foreign exchange are rapidly becoming exhausted, and although she can supply goods because her war readiness enables her at present to divert labour to her export industries, neutrals already are complaining of poor quality and delayed deliveries. Danger of Barter System The barter experience of SouthEastern Europe with the Reich made the Balkan countries realise the inconvenience and danger of the system which tends to tie their economy to Germany. Dealing with Russia’s ability to provide goods, the Times says: “There have been many reports about developing metal production, but few statistics of an increasing export surplus are yet available. In addition inter-German and Russian transport difficulties must be overcome.” The article concludes: “There does not seem, therefore, to be much in the notion of a Continental bloc which would appeal to neutral nations, but the project should serve as a warning to Britain to resume her export activities with all speed.”