ECONOMIC WARFARE

Dominion, Volume 33, Issue 84, 3 January 1940, Page 10

ECONOMIC WARFARE

The Part Of Government From time to time correspondents in London inform us of the efforts which Germany is making to extend her markets in the Balkans and in South Eastern Europe. . And it is so, too, in Scandinavia, though there she uses the weapons of naval force as "well as the pressure of business interests. . . Economic warfare, it is recognized m Britain, is more than a .blockade. Germany’s trade with adjacent countries must also be attacked by a vigorous economic initiative in those countries. The possibility of combating the, German drive depends, the "Financial News ’ declares, only upon the determination af the British people and the ability of the Government to provide the necessary organization. It is co'iisidered that there must be Government help on a grand scale. Whether the process takes the form of direct subsidy or of differential exchange rates depends upon the individual countries concerned. But a powerful effort of co-ordination there must be. British economic policy toward Turkey has been conceived on the right lines, and similar efforts should be directed toward the five Balkan countries. "These countries,” the "Financial News” states, "urgently need development; they have tremendous capacity to absorb goods, and their resources are coveted by Germany. If the German economic drive in South Eastern Europe can be checked, then the British blockade will squeeze the German economy decisively. In Scandinavia, the technique of the Turkish -agreement is unnecessary. The Scandinavian trading system is still free, and the problem is simply one of price—in particular, the price of coal. Outside Europe, the problem is more straightforward; it is one of supplying British goods where German goods used to go. In these foreign markets, Great Britain can expect to recoup some of the funds which will be lost in combating Germany’s continental drive. Co-ordina-tion there must be, and planning, with willingness to spend resources now. Any money lost in destroying Germany's markets will be trivial compared with the ecus't of carrying on the war longer than is necessary.”