EFFECT OF BRITISH REPRISALS AGAINST GERMANY

Horowhenua Chronicle, 24 November 1939, Page 2

EFFECT OF BRITISH REPRISALS AGAINST GERMANY

SERIOUS DEPLETION OF RESOURCES (British Official Wireless.) Received Thursday, 9.20 p.m. RUGBY, Nov. 22. Discussing the probable effect of the contemplated Allied action against German overseas shipments commentators note that after the application of similar measures in the last war German goods imported into the United States fell during the last six months of 1915 to between 4 and 8 per cent, of tho 1913 level and by a year virtually disappeared. Germany has not published her export figures since the outbreak of the present war but the Nazis admitted that this trade was seriously curtailed. It will now inevitably shrink further. The value of Germany's overseas shipments in 1938 totalled 1,208,000,000 reichmarks and with the stoppage of this trade it may be expected she will endeavour to sell her surplus exports to her neutral neighbours but these are unable to supply her with foreign exchange in the same measure as overseas markets. The currency of these overseas countries is also required to make trade with Germany's neutral neighbours more attractive than direct barter which increases their economic dependence on Germany. It is recognised here that the proposed measures may involve certain inconveniences to countries adjoining Germany through which the transit trade passes, but their basic industries will not be adversely affected and may benefit. A depletion of German resources will certainly result and by effectively shortening the war it is argued a longterm advantage will accrue to neutrals.