German Exports And Allied Blockade Plan

Northern Advocate, 4 December 1939, Page 6

German Exports And Allied Blockade Plan

(Received 1 p.m.) RUGBY, December 3

In a column article compiled by its editorial staff from German and neutral sources, the weekly journal, “The Economist” makes a series of observations on German export trade activity, which are of great interest in connection- with the Allied decision to seize German exports in neutral ships as a reprisal for German violations of the laws of war.

German industry, it is calculated, is dependent for 70 per cent, of its raw materials on imports, which must be paid for either in goods or in free exchange.

That part of Germany’s exports which is now subjected to Allied embargo is that from which she must look to obtain free exchange, it is stated.

As for trade through clearings, Germany has been putting severe pressure on neutrals to secure deliveries, but the results have not been very successful. German sales to Switzerland rose sharply in October, but Swiss deliveries to Germany did not, states the article.

Clearing Debts Reduced

Germany’s clearing debt to Switzerland, Italy, Holland, Yugoslavia, Rumania and Turkey has been reduced since the war began. Exports have been maintaind or increased, but imports from these countries have fallen short.

“Germany has not been able to accumulate free exchange or increase imports from the small European neutrals,” states the article.

“The bulk of Germany’s exports has gone to reduce her debts to the importing countries.” Attention is directed to the claim, which is freely made in. Germany, that trade with Europe and Soviet Russia can make up for the overseas trade lost as a result of the Allied embargo.

Vital Commodities Lacking

The first point made by “The Economist” is that the claim pays no i’egard to the fact that vital commodities like nickel, copper, cotton and jute are lacking in those markets. As to Russia, she “has only delivered grain and fodder, but Germany also wants oil seeds, textile fibres, manganese ore and phosphates from the Soviet.

“The Russian oil seeds output rose from 2.700,000 tons in 1913, to 4,500,000 tons or twice the Reich’s annual imports in 1918. but the common Russian oil seed is the sunflower seed, which is chewed in the same way as the betel and areca nut in India, and is not available for export. Manganese Offer to U.S.

“The Economist” points out, moreover, that “Russian grain, oil, timber, flax and ores, commonly have been exported in return directly or indirectly, for rubber, tin, copper, cocoa and tea from the British Empire. “Sussia must maintain her place in American and British markets, in order to obtain these commodities which Germany cannot supply. “Soviet exports cannot be diverted en bloc to the Reich.

“Russia lias, indeed, already offered a normal year's supply of manganese ore to the United States.”

“Press Hyenas”,—A message from Moscow says the newspaper Pravda, commenting on American press reactions, says the advantages of peaceful relations between Russia and Japan are too clear to allow Japan to listen to American “press hyenas” who are hinting at a combined Anglo-American fleet for the defence of the Pacific, based on Singapore.