ECONOMIC ISOLATION

Evening Star, Issue 21824, 13 September 1934, Page 9

ECONOMIC ISOLATION

POSITION IN GERMANY MANUFACTURERS' DIFFICULTIES Press Association —By Telegraph—Copyright. LONDON. September 12. The economic isolation of Germany is complete. A meeting of the Reichsbank yesterday discussed ways and means of financing new machinery for German factories for the manufacture of substitute materials. German business men generally refuse to manufacture substitutes owing to the expense involved. Every article imported which is valued at over 18s requires a certificate from one of Dr Schacht’s control officers. The certificate entitles the importer to the foreign currency needed to pay for the purchases. The ‘ Daily Telegraph’s ’ correspondent says: “The Anglo-German exchange agreement is working sluggishly owing to the German decision in favour of a permanent policy of restricting imports. British exporters are also anxious with regard to the £2,000,000 owing for goods exported from Britain before the exchange agreement.” ANGLO-GERMAN EXCHANGE PAYMENTS INTO SPECIAL ACCOUNT CEASE TEMPORARILY. (British Official Wireless.) RUGBY, September 12. (Received September 13, at noon.) The Treasury announces that the Reichsbank, in accordance with article 2 of the 'Anglo-German exchange agreement has temporarily suspended payments into the .special account opened by it in the name of' the Bank of England. It will be recalled that the agreement set up machinery .to overcome the difficulties experienced by German firms in obtaining sterling to pay tlieir debts for imports from Britain. Article 2of the agreement provides that the payment of marks into the special account may be suspended when, the amount of reichsmarks on that account exceeds 5,000,000, and it is in accordance with this provision that payments into the account have now been temporarily suspended. It is stated that the Bank of England will continue to sell marks, and as soon as the balance of the special account at the Reichsbank is reduced below 5,000,000 reichsmarks, further payments into the account will be accepted by the German authorities.