GERMAN TRADE TREATY

Press, Volume LXXIV, Issue 22414, 30 May 1938, Page 11

GERMAN TRADE TREATY

NAZI VIEWPOINT EXTENSION OF AGREEMENT SOUGHT FREER INTERCHANGE OF COMMERCE Utbom oun own coerbspohdikt.) LONDON, March 25. Germany would like to see an extension of her trade with New Zealand beyond the present “barter” agreement, She would prefer a freer interchange of commerce similar to the trade relations of the Dominion with Great Britain. But it is fully realised that the first step in this direction must be taken by New Zealand rather than by Germany, since the Dominion’s trade relations with the Mother Country will always be placed first.. These views were expressed by several German economists and officials at file Leipzig Spring Fair last week. It was emphasised that Germany’s standard of living was rising so rapidly that the needs of the people would shortly be in excess of home production. In the last 50 years the people had become increasingly industrialised, so that to-day 70 per cent, of the population was engaged in industry and manufacturing and .30 per cent, in agriculture. “We can offer New Zealand practically every kind of manufactured article and in return take primary produce from you,” was a remark frequently made. It is urged that, in order to establish a closer commercial understanding, New Zealand might be represented at the Leipzig Fair, the shopping centre of all Europe, At this year’s spring fair there were no fewer than 818 non-German exhibitors from 32 countries, including Great Britain, the British Indies, and Egypt. 700 Years Old The Leipzig Fair dates back for 700 years, and this great musical centre— Richard Wagner was born there and Bach is buried there—is to-day the shop window for Nazi Germany's economic expansion. This year more than 50 per cent, more business was done than in 1933. The total area of the fair buildings is greater than that to be covered by the whole of the Empire Exhibition at Glasgow. Twice a year, in the spring and autumn, Leipzig becomes the mecca of buyers from all parts of the world. An interesting ooint is that the fair is not open to the general public of Leipzig, but to buyers and representatives of firms only.

The suggestion regarding New Zealand’s representation has been made in London and in Wellington, but, at the present time, with the barter system of trading in vogue, it has not been received much much enthusiasm. In Germany there can only be sold as much New Zealand produce as the Dominion can take German goods In exchange.

Industry is Busy

The eagerness on Germany’s part to increase her exports is not difficult to understand. .Since the “new Government,” as it is called in Germany, came mto power the country has seen an army of 7,000,000 unemployed reduced practically to nothing. To-day it is claimed that industry is so busily engaged that there Is actually a shortage of workers in several trades, weaving being one. With this steady output of production it is becoming increasingly necessary for Germany to expand her markets. In the area round Leipzig factories are working full time producing synthetic wool for clothing of all kinds, stockings, lace, cameras, films, and so on.

In each factory is a photograph of a plaque of Hitler with the Nazi flag and swastika for a background. Uniforms of the National Socialist Party are worn by all officials, and in several buildings there are such mottoes as “The Leader for Us, we all for the Leader.” Every worker is automatically a member of the Workersfront, and belongs to the “Strength Through Joy” organisation which cares for and encourages recreation. All workers greet one another with “Heil Hitler,” ahd the same phrase is frequently employed when 6 worker leaves the building at night to return home.

The Nazi atmosphere pervades every factory and, apparently, the staunchest supporters of the-regime are the owners and employers. Many of them like to think of the various branches of German industrial life as a great orchestra with Hitler as the conductor. Few public speeches are made without glowing references to Adolf Hitler and the work of the Government. At the Leipzig Fair this year an interesting feature Was the display of substitutes, both metal and textile. A number of. new light alloys have been produced based mainly on aluminium and intended to serve most of the purposes of heavy iron. and steel, since there is a shortage of iron ore. copper, chromium, and manganese. The drawback to German producers is that these substitute metals are always more expensive th&n those' they are Intended to replace. Artificial rubber is now being made from hydrogen and coal,.but it costs four times as much as the natural product. Staple Fibre

The production of staple fibre, which has increased so enormously in Germany during the last few years, was reflected in Leipzig in the textile section, In one house there Was a suite Of rooms furnished and decorated, from the doormat to a lady’s evening frock, all with substitute wool. The quality of this material, made from wood, is remarkably good. An important point in its favour is that the price. does not vary greatly from 'the natural article. ..■■■' , The question of New Zealand’s representation at Leipzig, which will probably be suggested again at some later date, will naturally be a Government consideration. The last three months have seen the completion Of the first shipment of. New Zealand butter to Germany for this yes\r, and the Dairy Sales Division in London have stated that the relations have been most amicable and that the transactions have been carried through without a hitch. ’ . u. Interest has been caused m that German taste is for a very lightly salted butter, and in some cases preference was shown for brands with a light Salt content. A total of 38,000 boxes was shipped in the December-Ffebruary period. More would probably have been taken had not the Continental price fallen below that of New Zealand. It is not anticipated that further shipments will be sent to Germany before hext December. Shipment of Fruit Mr H. Turner, London manager of the New Zealand Fruit Board, returned this week from Germany, where he was engaged in negotiating the sale of a quantity of New Zealand fruit. “Prospects at the moment are quite favourable for a reasonable quantity of nur armies to be sent to Germany this

year,” he said. ’’The . first shipment of 30,000 cases is being carried on the Port Auckland, and will be discharged at Hamburg early in May. This will be followed by one or two further shipments. At the moment,, the exact quantity is not known. “Our fruit is already favourably known there,'and the trade is looking forward with a good deal of eagerness to handling it. The good reputation established by the Dominion when we' Were able to use the market some years ago has been-remembered, and our apples are looked upon as one of the best classes of their kind.” At Leipzig Mr Turner investigated the development of machinery and plant for unfermented fruit juices. No great advances were noticed, but a close watch is being kept on this section of the trade.