THE EFFECT OF THE BLOCKADE

Evening Post, Volume CXXIX, Issue 9, 11 January 1940, Page 9

THE EFFECT OF THE BLOCKADE

The institution of the two-way; blockade of Germany, with the intention of destroying all German power of building up overseas credits, is quickly having a powerful effect This answer to the German counter-block-ade by the mine is obviously much; more1 calculated to inflict harm than are the operations of a handful of desperadoes daily cruising under or over the seas. A study of the world Press reveals that fact, and some of the most striking confirmation comes from Germany itself. In the last month there has been a marked increase in the Nazi attempts to have the neutrals fight the British blockade for the Germans, and German officials have said that they "cannot be satisfied with paper protests against Britain's action." Neutrality which 'displays sensitiveness on one side (against German action) "and tolerates gross violations of international rights on the other" (by Britain) js unsatisfactory to the Reich, it was officially stated in Berlin on December 11.; A high official of the Netherlands Government retorted to these suggestions with the statement that his country, and other neutrals, were not going to reply to British action with violence and thus involve themselves in war with the Allies for the sake, of pleasing Germany. , The serious effect-of the blockade on German overseas trade was admitted by Emil Helferrich, one of the bestknown German economists, in an article in Marshal Goering's official publication "The Four Year Plan" last month. Helferrich declared that the fact must be faced that British action had brought German foreign trade to a standstill, just as in 1914-18. 'German ships are lying in more than a hundred harbours all over the globe, he wrote. "Goods and ships are blockaded by the British Navy, and part of them have already been confiscated. An enormous quantity of goods manufactured for export had accumulated at German ports and was filling warehouses. Helferrich recalled that the Fuhrer said that Germany must export or die." The whole import and export trade made the greatest efforts to carryout the Fuhrer's wishes and the result is that Kiel, Lubeck, Bremen, and: Hamburg are all gradually heading towards ruin. No firm is able to build up any financial reserve owing to heavy taxation, and they are compelled to meet their interest payments and liabilities to cover their overhead expenses, and are heavily involved. He says that the Government must provide the capital necessary to keep the, exporters afloat, must release them from such obligations as the paying of rent, and allow them to dismiss employees, and must provide them with some other kind of business. The publication of the article is believed to have been permitted because of a "difference of opinion between Goeririg and the Reichsbank over subsidies for exporters, the Reichsbank having "!•».; fused to grant them, y '«