BELGIAN ECONOMY

Dominion, Volume 34, Issue 85, 4 January 1941, Page 4

BELGIAN ECONOMY

Germany’s Plan To Solve N ationality Problem INDUSTRY STARTS AGAIN Of the approximately 2,000,000 Belgians who tied their country when the juggernaut of war rolled across their borders some 250,000, according to German authorities, have now been transported back home by car, truck and train, states a Brussels messagejto the "New York Times” ou October 5. With the reconstruction of the railways in Northern France and Belgium almost completed it is expected that the gigantic trek homeward of the Belgians will be expedited at a more rapid pace than in the first stages when most of the refugees had to be transported in automobiles and trucks. From the welter of confusion left in the wake of war Belgium, as it will exist in the period of German domination of Europe, is now gradually beginning to appear. Still under Nazi military administration because her coastal lines are in the zone of operations, Belgium is, nevertheless, gradually getting straightened out and formulating her life once more under conditions which, tlie Germans maintain, will be only temporary since “it is tlie Keich’s intention to retain Belgium economically and culturally as an independent entity.” The military administration, according to Government president. Heeder, wiio stated his opinions in an authoritative German news organ, considers itself the "trustee” of the entire Belgian nation. Economic Ties to Remain.

In this sense the military authorities are engaged not only in bringing Belgium back to normalcy and establishing firm governmental authority, but also in paving tlie way for an independent Belgian administration at the war’s end. Economically, however, the "new Belgium” wili remain identified with the Reich. This .much was evident from President Reeder’s remarks.- Belgium’s economic reconstruction, be stated, necessitated a far closer union with Germany titan existed before the occupation and this condition "must remain in the post-war era,” lie said.

■When the Germans moved into Brussels and took over (lie administration of the nation, President Reeder .stated that they found chaos. Tlie government had tied, tlie transportation systems were paralyzed, large sections of tlie official personnel had left their posts, 2,000,00(1 Belgians were homeless wanderers along the highways; tlie food-supply system was disrupted and the banks were depleted of funds.

The German administration was faced with the immediate and pressing problem of restoring some semblance of order, notably of getting the refugees back home. To supervise tlie reconstruction of industry, tlie German military authorities set up central organizations similar to those established in the Reich. These organizations control both tlie distribution of raw materials and production. "it was emphasized that Belgian industrial experts participated in and were in a large measure eo-resputi-sible for these organizations that exercise strict control over the entire Belgian industrial life. Industries Start Fmfctioning.

The iron industries were beginning to function once more with iron ore from Lorraine. President Reeder staled. The textile industry, one of the most important in Belgium, was best off for raw materials, since it got most of its supplies from tlie Netherlands and France, which were still able to deliver, and were delivering, goods. The food supply and its distribution were particularly difficult, President Reeder stated. Belgium was only 50 per cent, self-sufficient in foodstuffs, lie said. Tlie Germans therefore immediately introduced a strict ration system. Thereby, lie said, tlie demands of (lie population were satisfied, with tlie prosnect of an increasing measure of supplies being distributed to the consumers.

Tlie Germans have also attacked (lie nationality problem in Belgium, a population made up of Walloons and Flemings. Botli cultures are to lie permilted freedom of development, President Reeder slated, and be added I hat in the near future cultural councils will lie set up to represent tlie interests of each. The Flemings, however, it was stated, will receive in practice tlie equality for which they have been Struggling. To solve tlie language problem. President Reeder concluded, a commission with wide powers will be formed which will give practical realization to the language lines of 1932.