TRADE AND OIL

Evening Post, Volume CXXIX, Issue 22, 26 January 1940, Page 8

TRADE AND OIL

The new trade agreement between Rumania and Germany, which has been in the news for some days past, may be summarised briefly. In the first place, the German trade mission wanted the exchange rate fixed at about 75 lei to the mark; the rate finally fixed was 49.50 lei to the mark. In the second place, Germany wanted to take about 45 per cent, of Rumanian oil shipments abroad this year. The actual quota fixed for the Reich was 130,000 tons a month, or 1,560.000 tons a year. This is a good deal less than 45 per cent., for the total Rumanian shipments are expected to be up to 5,500,000 tons in the next twelve months. The Rumanians'were against

the, alteration in the exchange rate because they owe Germany some 16,000,000 marks, and to depreciate their currency would be to increase the weight of their debt. In addition* the Germans have had to increase- the shipments of war material to King Carol's State. When Hitler annexed Czecho-Slovakia it-was announced that the orders placed by Rumania with the Skoda works would be honoured—ah advance payment of 135,000,000 Czechoslovak crowns had been made on them. • Delivery of the arms contracted for is to be continued. But in order to get the produce that Germany wants in return, the Reich has found it necessary to offer to send 180 locomotives and 3000 wagons to Rumania.