Germany Turns the Screw on France

Manawatu Times, Volume 66, Issue 142, 17 June 1941, Page 5

Germany Turns the Screw on France

LONDON, June 15. Two conditions Admiral Darlan accepted at Berehtesgaden are revealed by the correspondent of the Times on the French frontier. They are: 1. In return for free trading between occupied and unoccupied France, he agreed that Germany should control France’s exports, for which the Franco-Swiss frontier would bo closed except at Bellegarde, where German Customs officials would be installed. The same would apply to the FrancoSpanish frontier and to French seaports, including Marseilles. Germany would thus be able to enforce the delivery of French exports where the proceeds could be utilised to import, through France, what Germany wants, regardless of French interests. 2. In return for a reduction in the charges for the German occupation, Darlan agreed that the payments should be in gold or foreign currencies, involving the liquidation in Germany’s favour of all French foreign assets, consisting of shares, loans, and credit balances, partnerships, buildings, and land. The Vichy Government, however, has not endorsed Darlan’s second commitment, says the correspondent, and for this reason Germany now says it will be necessary to release the unexpected balances of the occupation charges These, up to the end of February, amounted to 63.000-million francs and have since grown. , “If Germany carried out her threat,” the correspondent declares, “the resultant inflation will plunge France into the deepest economic misery.”