GERMANY AND BALKANS

Evening Post, Volume CXXVI, Issue 143, 14 December 1938, Page 10

GERMANY AND BALKANS

REICH'S NEW VISTAS

THE SUCCESS OF DR. FUNK

Germany is gratified at the matter of fact way in which Great Britain hai taken note of Dr. Funk's remarkably successful economic mission to Turkey, Yugoslavia, and Bulgaria, writes the Berlin correspondent of "The Observer." ; ' In the German view, there can be no genuine improvement in relations with Britain until something like a change of heart takes place towards the Reich and; its foreign policy. The Munich Agreement provided a de-parture-point for a new start. Additional British re-armament," and the feeling here that it is really directed against Germany* has, however, prevented the start from being made. « In Britain's attitude towards Germany's strengthened economic relations with the countries of 'South-Eastern Europe, Germany sees more promising signs of the recognition of her future intended role of predominant Power on the Continent of Europe. Thus the tacitly-agreed division of "spheres of interest"—Great Britain's overseas, and Germany's in Europeis seen here as making progress and a settlement on these lines drawing nearer. - PROSPEROUS OUTLETS. Dr. Funk, a.former, newspaper city editor, who has never lost his regard for his old profession, has proved a bigger and altogether more significant figure than many people here .'expected when he succeeded the redoubtable Dr. Schacht. He has placed before Germany—and before Europe as a whole-*-a vista ol an economic reorganisation of the Balkans, in which German engineers will be occupied in building new roads, bridges, telephones, and cable.systems, and new factories and industrial plants. In this picture, German industry is seen as being as busy now as in the old expansionist days which ended with the, Great War. The raised standard of living in the Balkan countries, reinforced by a preference system, if not actually a number of Customs unions with some of Germany's smaller neighbours, will establish German trade on a flourishing and permanent level in a new Grosswirtschaf tgraum. This may extend north-eastwards to wards the Baltic as well as southwards towards the Black Sea. Germany, it is declared authoritatively here, is in a position to take the surpluses of foodstuffs and raw materials of all these European small States at prices above world prices in accordance with her own high and stabilised internal price level. CAN BE RESOLD. What Germany cannot use herself -she can resell. .This, paradoxically, would be by no means at,a loss; for if she resells tobacco or grain bought at a high price for German stocks or bonds made cheap by the exchange and transfer restrictions, the loss on the resale price of these commodities would be wiped out by the higher internal value of the stock' or bonds, obtained by Germany for them from abroad. Thus Balkan grain may reduce German foreign indebtedness and the pressure on the mark. Dr. Funk does not intend, moreover, to rest on his oars. He will shortly set out again on a mission to Rumania, which has a heavy surplus of wheat among other things which Germany can buy and thus complete his Balkan journey. It is true that the German Economic Minister wishes to improve AngloGerman trade relations. This, however, is recognised to be no simple matter, and does not, in the first instance at least, mean a livelier exchange of goods directly, between Germany and Great Britain. Improving Anglo-German trade relations in the German mind signifies improving German trade relations with the British Empire (which must affect the Ottawa Agreement) and also with the United States. — In short, Germany wishes to be able to import more Empire and American raw materials, and to do so to sell more manufactured goods there.