TRADE WITH GERMANY

New Zealand Herald, Volume LXXIV, Issue 22714, 28 April 1937, Page 15

TRADE WITH GERMANY

Sir, —In your sub-leader on this matter you suggest that Germany might offer manufactured goods in exchange for Dominion produce that would cut into Britain's market. This is more than probable. Germany's economic position is precarious. Her industry has almost ceased to accumulate liquid funds. The National-Socialist doctrine is not an economic, but a political, one. Hitler bends the economic life of the country into whatever mould suits the particular ambition of the moment. Autarchy, self-sufficiency, is the present decree. But Germany cannot feed herself. She produces about 70 per cent of her food and fodder arid imports the rest. Synthetic products are being produced, but at what a price! Artificial gasoline is to cost her so much more, domestic beet sugar so much more, artificial rubber another large sum. And so on, with domestic iron ore and wood fibre substitutes. She had an export surplus of three billions in 1931 and two to three billions in IThereupon her creditors set up "clearing" systems to secure their money out of German exports. To outwit them Dr. Scliaeht resorted to primitive bartering. However, the "batterer" must act quickly, and take the best deal offering. And in June, 19136, Germany's trade figures show that Germany gave twice the tonnage of goods Ijor the same value as in 1933. Holland. France, Switzerland repeatedly have complained they could not get all the German margarine, shoes and clothing they wanted. Germany will not sell them—because in all these countries she has long-term loans and simple debts for unpaid goods. In tho Balkans she renews her credit by exchange of armaments for foodstuffs. And this a region over which she seeks political domination! Economic retribution seems pretty near Germany. Mr. Nash, one presumes, is fully informed? G. Hamilton Eraser,