OCCUPIED LANDS

Dominion, Volume 34, Issue 80, 28 December 1940, Page 12

OCCUPIED LANDS

Economic Objectives Of Germans OLD SYSTEM USED Evidently Germany is pursuing the same subtle economic policy in the occupied territories as she followed in the Balkans under the guidance of Dr. Schacht and Dr. Funk, says a writer ■in “The Times.” The similarity .of the methods adopted in exploiting these countries for Germany’s own ends was the subject of expert comment in London. The main Nazi aim in south-eastern Europe was so to link the economic systems of the Reich with those territories that they would remain attached financially and commercially even in case of war. The Germans bought the agricultural produce of the Balkans on long-term contracts, often at above world quotations, and assured ihose countries a steady sale over a number of years. As a result the latter gained extended credits with which they could purchase what the Reich chose to offer, which was largely armaments and machinery and sometimes goods of the now almost proverbial “aspirin and mouth-organ type. But as the flow of goods to Germany was much more regular than the supply in return, the Balkans in most cases accumulated large credit balances in Berlin.

Tricks of the Nazis.

Another disadvantage was that the Nazis might charge heavily for their goods or might insist on an unfair valuation of the mark. The latter trick was worked on the Rumanians. At the same time the Balkans, by .selling so much of their produce to the Reich, could not supply other markets in free exchange countries and were therefore unable to acquire free currencies. Thus they were deprived of goods from such countries. Under these conditions the fate of the Balkans was to become the larder of Germany and to see their factory industries gradually vanish. In order to make up deficiencies in the Reich they were obliged, for instance, to plant increasing areas to soya beans and sunflower. Denmark has now to plant more oilseeds.

Tn the occupied territories very much the same type of exploitation is proceeding, but on an extended and rather refined scale. In these cases, however, there is no limit to the accumulation of clearing balances against Germany. The invaded lands can go on exporting to the Reich and receiving no goods in return. In Belgium credit is given by the Central Bank to exporters who have sold to Germany. Thereby a two-way inflation is created, since the more goods leave the country the more money circulates in it. The German clearing debt to Denmark at the beginning of July was estimated at 150,000,000 kroner, and the Danish export surplus in less than three months of German occupation as 200,000.000 kroner. This figure is remarkable, as it is identical with that of Denmark’s normal quarterly exports to all countries (not her quarterly export surplus). As in the Balkans, so in the occupied territories, there has also been manipulation of the rate of exchange to the. advantage, of course, of the invader. For example, the French franc is now valued at 20 to the mark ; the Belgian franc, which at the time of the occupation was 10 to the mark, has gone to 12.5, while the Dutch guilder has moved from 0.67 to 0.75. Similarly, the goods which the occupied territories can import. and their price, are entirely in the power of the Reich. None can be brought from overseas. Therefore the Germans do not have to undersell competitors and can charge what they like. Nor does the Nazi Government need to subsidize exports in order to keep prices down. Conqueror’s Terms.

From all this evidence it is clear that in the same way as the Balkan economic system was replanned to meet German needs, the occupied territories would- be reduced to the status of agricultural countries, supplying an Industrial conqueror. The standard of living would be lowered just as that of the Poles and Czechs. Some frank admissions of these objects have been made in the German Press and broadcasts. Ililversum gave a plain hint to Holland recently, saying: “It is economic madness for every country to try to produce everything from pins to large machines. Nor should large industries be established which do not pay their way.” The “Volkischer ’ Beobaehter” announced recently that "with the German talent for organization . . . French food resources would be exploited to the full extent. . . . We Germans are just as much interested in the French harvest as the French themselves.” In short.

Nazi methods in the occupied territories are a natural sequel to Dr. Funk s statement of July 25 on the economic reconstruction of Europe, which concluded with these words: “Every European country is to develop its own economic resources and to trade with other countries, but the principles and methods regulating such trade will have to be more or less German.”