GERMANY’S DEMANDS

Dominion, Volume 31, Issue 142, 12 March 1938, Page 2 (Supplement)

GERMANY’S DEMANDS

Reasons For Return Of Colonies HONOUR AND MILITARY NECESSITY Two years ago the British Government gave a boost to tlie thesis that war springs from economic causes, says a writer in the “Christian Science Monitor.” Sir Samuel Hoare was its spokesman. It was at the time of the Ethiopian conflict, and Sir Samuel Hoare, then Foreign Secretary, said at Geneva, September 11, 1935:

The view of his Majesty’s Government is that tlie problem is economic rather than political and territorial It is tlie fear of monopoly—of the withholding of essential raw materials—that is causing alarm. It is the desire for a guarantee that the distribution of raw materials will not be unfairly impeded that is stimulating' the demand for further inquiry. So far as His Majesty’s Government in the United Kingdom is concerned, we should. I feel sure, lie ready to take our share in an investigation of these matters.”

Sueli an inquiry is at last to he made at Geneva. Ethiopia, of course, has been forgotten, and the concrete issue facing the inquiry is Germany’s demand for tlie return of her pre-war colonies.

Germany and other consumers of raw materials are on solid ground in complaining about the monopolistic control of raw materials. I have always regarded with suspicion the in’ernationnl cartels governing tlie output of rubber, copper, and tin. But I cannot sec how the return of Germany’s old colonies would offset these monopolies. In pre-war years only one half Of 1 per cent, of Germany’s total trade with all countries was dime with her colonies. This shows the lowly estate of those colonies as providers of raw materials used by German industry.

“Germanicns'’ in a book called “Germany: the Last Four Years” quotes Dr. Goebbels as saying that there six raw materials which are essential to a powerful state. They tire coal. iron, oil, cotton, rubber, and copper. Rut

when yon look at the pre-war German trade returns, you fimr’that next to nothing of these materials came from German colonies. The same situation applies to-day to these colonies under mandatory administrations. A German economist with whom I recently discussed the matter readily admitted these conclusions. He offered, however, an economic defence on the German demands by saying that the colonies could supply fa s. particularly palm oils But these fats can be/ bought on the same terms as the other mandatory powers buy them. That > s to say, they are available on the world market. Maybe the colonies could be made to yield some quantity of Dr, Goebbel's list of essential raw imperials. I can find no evidence that they can. Assuming. however, that this is possible, such exploitation requires an initial use of capital, and Germany has no capital to spare. The development of colonies is an expensive business, as the Germans themselves found out in pre-war years. The last budget covering Germany’s colonies amounted to over 1.01)0.000.000 marks. And yet the trade for which this expenditure in part was made totaled only half of 1 per cent of Germany's foreign trade!

Accordingly, we may dismiss. ! think, the economic arguments for the return of colonies. I'lir more pressing arguments from Gei’inany’s standpoint are honour and miliisiry nece-sity. As to [lie former, every Gertncn i-sents tlie implication in the Versailles Treaty 'hat Ge’rniiiuy was not tit 'o run colonies. when, in fact th” Goi"’iiui ' lire **xeellent colonial adi’.’itiistiiite’s. The military reason buck of th” e 'lpny demand is, I sugges*. obvious to a «eheo, boy.

No doubt the inquiry in Geneva will make these points clear. Also, if is to be hope-. it will expose the problem of international nioucpolics ever essential raw ‘ma erials If Germany would concentrate her tire on rhe problem. she would find more senporters from other "have not" countries, including the United Sta’es. For the United States is the lead’ng "have not" in the world in respee* of rubber and tin. Tina* Germany does not do so is a sign that she wants to match monopoly with monopoly, bit' tor niilbaty and prestige reasons other han ecrtiomic.