ECONOMIC WAR

Gisborne Herald, Volume LXVII, Issue 20141, 10 January 1940, Page 7

ECONOMIC WAR

STERLING AS WEAPON ALLIES IN THE BALKANS NAZIS' LOSING BATTLE LONDON, Dec. 16. “Unless we force the Balkans to fight an economic war on our side we shall be strangled by the blockade,’’ declared a representative of Germany’s gigantic chemical industries at Zurich this week. He was on his way to the Balkans. “An invisible blockade is far more devastating than naval warfare aimed at chasing German battleships and submarines off the seas. Particularly is this so since England and France pooled their buying. “In the Balkans the Allies are not fighting with lead and steel, but with gold and silver,” the speaker continued. “Wherever foodstuffs and raw materials are ready for sale a representative of some well-known British or French firm, in . reality acting for the Government, appears, ready to pay spot cash, sterling or dollars, for timber, ores, grain, . hides, textiles, fibres, or anything vitally necessary to Germany. Allies’ Advantage “When the deal is closed, the buyer, who as a rule does not really need the goods, has them warehoused, under the pretext that he is unable at the moment to obtain transport to England. "Germany has the chagrin of seeing how these vital necessities are withheld from her. These deals are all the more alluring to the Balkans because they are quick, simple and straightforward, and yield sterling, with which raw cotton can be bought from the United States. At present the dearth of cotton is proving an acute impediment to the Balkan textile industries. England arranges to convoy the ships carrying the cargoes, which Germany cannot do. The Allies never buy fruit or other perishable commodities. “Only one Allied buyer appears at one place. If the seller hesitates, the buyer disappears and the seller then has no option but to accept a complicated German barter deal.”

Germany’s Difficulties

Asked how Germany financed her foreign trade under blockade conditions, the German industrialist admitted that the blocked-mark method, invented by Dr. Schacht, which was used successfully during the Hitler regime, had broken down. “Germany must now pay for imports with actual goods,” he said. “To obtain bank credits or loans from neutral countries is out of the question. Germany is already heavily in debt to these nations, and particularly to Switzerland, where about £100,000,000 is involved.

“As -egards iron ore, Germany’s need is so great that a decree just issued provides for the demolition of all gas and electric light lamp-posts, enamel advertising signs and nameposts, showcases, and even iron doors and window shutters.”