WILD EXAGGERATION

Gisborne Herald, Volume LXVI, Issue 20075, 23 October 1939, Page 9

WILD EXAGGERATION

GERMAN TRADE HOPES OFFSETTING BLOCKADE AID FROM NEUTRALS (Elec. Tel. Copyright—United Press Assn.) (British Official Wireless.) Reed. 9 a.m. RUGBY, Oct. 20. That Germany is organising a socalled blockade against Britain, in which the co-operation of neutral countries will be enlisted as a result of economic negotiations proceeding in Berlin, appears to be based on the extravagant estimates of the productive capacity of neighbouring neutral countries to offset the effects of the British contraband control. A survey of ihc position appears in this week's number of the journal Economist, whose objective accounts of economic trends in Germany are a regular feature. The Economist says: “Germany’s trade relations with neutral countries at present may be summarised as follows: Accessible neutrals are able to supply a considerable part of Gorman imports of foodstuffs. The most important raw materials they are able to supply are iron, ore, bauxite, mineral oil and timber. They cannot furnish all the bauxite and mineral oil the Reich will need by a considerable margin, and Russia’s exports, the value of which is being wildly exaggerated, cannot be appreciably expanded for some time to come. Problem of Payment. “Moreover, these imports must be paid for by exports. There has been no news from neutrals that Germany has not been able to execute orders, and so long as there are no major military operations Germany should be able to maintain the production of coal, iron, steel, machinery and chemicals at, say. 50 per cent of the level of 1938-39, but the 1938-39 level was much -below that of 1937 and, when a large-scale war begins, if will quickly be made difficult to make export goods in large quantities.” The Economist adds that considerable difficulties have already arisen in 'ransporting goods from Balkan countries to Germany. There is a shortage of rolling stock, especially in traffic from Yugoslavia and Bulgaria to Germany. The ’cereal and oil transport of Rumania has had to be diverted to the Danube, and Danube tonnage is also scarce.