ALLIED GAINS

Hokitika Guardian, 21 May 1940, Page 6

ALLIED GAINS

FROM LOW COUNTRIES. ( Per British Official Wireless.) RUGBY, May 18. The weekly journal, “The Economist,” points out' that Allied joint currency and credit arrangements will jncan proceeds in foreign exchange from the sale of Belgian and Dutch colonial produce will lie available for Allied purchase of raw materials, munitions, aircraft, arid foodstuffs elsewhere, amL that no foreign exchange will be needed by the Allies to obtain vital raw materials of these empires. The Netherlands,' East Indies trade with the United 1 States is considerable, and there * s a valuable balance in dollars. A third of the/world’s rubber output is in the Dutch Empire, and a fifth of the world’s tin. In the Belgian Congo there is copper. The Amsterdam diamond trade with most of its diamonds, lias escaped' the invader. Noy is this all that the Allies gain. Belgium, and especially Holland, are great trading and financial nations, and the basis of their trade is shipping. Their accumulated gold and foreign exchange assets, most of which the Allies will control, exceeds 350 million pounds, a remarkable addition to the buying power of the defenders of democracy. Holland’s investments in the United States amount to perhaps 'SO millions of which some two hundred millions may be negotiable. Belgium’s United States investments may he 35 millions. These are clear gains to the Allies, but, on the other hand these represent a serious disadvantage for Germany.