ECONOMIC WARFARE

Greymouth Evening Star, 3 November 1939, Page 8

ECONOMIC WARFARE

ALLIED SUCCESS REVIEWED

[BRITISH OFFICIAL WIRELESS.]

RUGBY, November 1

In a broadcast to-day the Minister for Economic Warfare (Mr. R. H. Cross) said the question as to the present Allied success in the economic war was not easily answered, because’ the economic weapon was one which acted gradually, and two months was but a short test. In the first six weeks the Allies intercepted about 488,000 tons of petrol, iron, aluminium, copper, . and phosphates, amongst other things, destined for Germany, and although the figures for the past fortnight were not really worked out, the total had “now comfortably passed the half million mark.” These figures did not include direct losses caused by shippers not attempting to send goods to Germany. There was plenty of evidence of German financial and economic difficulty, which must increase so long as practically all sea-borne trade was lost, and must eventually end in paralysis. “Germany’s losses are our gains,” Mr. Cross added. “Since the beginning of the war, Germany has had to forgo practically all her sea-borne trade. Indications of our success are the appeals to German children to gather nettles from which cloth can be made. German children are lectured on the virtues of artificial wool and rubber, and housewives are told the excellence of artificial soap.” Mr. Cross said the Nazi Government had sufficient resources at its disposal to feed the German people if it should choose “butter rather than guns,” and devoted men to the needs of agriculture.

LEGAL SITUATION Dealing with the legal situation, the Minister said international law recognised foodstuffs as contraband on condition that they were going to help the prosecution of a war. At one time it was possible to distinguish between goods intended for armed forces or an enemy government and those designed for the civil population. This distinction was now impossible and, as put by an eminent American international law writer, “as war is now conducted it is a probability rather than a possibility that foodstuffs imported into belligerent territory will serve a military end, and so be used for hostile purposes.” This was accepted by both sides in the last war, as General Ludendorff showed in saying: “In this war it was impossible to distinguish where the army and navy began and the people ended,” and the German Prize Court, in the case of the ship Maria, condemned a cargo of wheat consigned to Belfast and Dublin, although the evidence showed that the wheat was intended for millers operating for private purposes wholly. The evidence was rejected by Germany on the ground that “it could not be positively established to what use the wheat would actually have been put upon arrival in Belfast, and whether the English Government would not gladly have purchased it.” In conclusion, Mr. Cross said that although each indication of success in itself might be described as a straw they served to show which way the wind was blowing, “and I think you will agree it is a good wind for us.” IMPORT LICENSES RUGBY, November 1. The Import Licensing Department of the Board of Trade announced tonight that it was now prepared to consider applications for import licences for goods imported ’ under bond for re-export, whether further processed in this country or not, and goods on which duty is paid and subsequently recovered on re-exporta-tion.

The Ministry of Economic Warfare is prepared to regard a bill of lading made to the order of a bank or accepting house, and bearing the inscription, “Notify buyers, Messrs. etc.,”' as equivalent to a bill made out to a named consignee. The use of this form will ■ remove from the consignments covered the almost certain presumption of ultimate enemy destination, at present attaching to goods consigned simply to order when sent to a country from which they might reach the enemy. Whatever form of bill is used, however, no goods will be exempt from seizure if there is any suspicion of ultimate enemy destination.

ANGLO-FRENCH FINANCE.

LONDON, November’2

The Paris correspondent of the British United Press says: The Cabinet has agreed to the creation of a British-French clearinghouse for buying in foreign countries from a common fund.