ANGLO-GERMAN TRADE.

Manawatu Standard, Volume LIX, Issue 63, 15 February 1939, Page 8

ANGLO-GERMAN TRADE.

Considerable interest and not a little concern have been displayed in Britain regarding German trade methods and their threat to British interests. Responsible Ministers have stated that if Germany will not enter into an agreement with Britain the Government will take up the challenge. At the time export credits were voted as a means to assisting British industries to meet this uneconomic form of trade, which is to be deprecated for its pernicious effects. The coal agreement recently concluded was the first sign that Germany realised the power of Great Britain in this matter and the co-operation shown was welcomed. It defined market spheres as between the two countries. Subsequently, it was announced that attempts would be made to extend this principle, and to further the matter the Federation of British Industries is sending an important delegation to Germany, at the head of which is Sir William Larke, director of the British Iron and Steel Federation. The discussions will cover the wide field of British and German trade problems. It is particularly in Germany’s interests that she should realise the tremendous importance of sounder trade methods. Her plans for self-sufficiency show no signs of success, and last yeai she imported goods valued at £454,000,000, with exports reaching to £438,000,000 to pay for them. The German people are passing through a time of severe economic trial, a witness to this being the “one-dish day” held on Sunday in aid of the winter relief funds. The public have been told that guns and not butter are required to make the Reich powerful and have hail to tighten their belts. The State sought to curtail imports by tariffs, quotas, and embargoes, reinforced by exchange control and lastly by control of exports and imports. Britain, on the other hand, upholds the principle of the freest possible exchange of commodities. Rearmament has placed a severe economic strain upon the nations engaged in it, but Mr Walter Elliot’s words are true —Britain’s immense economic reserves are coming into play, and with greater effect as the pace increases. Germany must realise this and show the goodwill mentioned by the President of the Board of Trade which alone will be possible in “solving many trade problems and so obviating the need to resort to other measures.”