FINANCE PUZZLE

New Zealand Herald, Volume LXXV, Issue 23000, 30 March 1938, Page 13

FINANCE PUZZLE

jAUSTEO-GERMAN UNION BRITISH INVESTMENTS BONDHOLDERS' INTERESTS By Telegraph—Press Association—Copyright LONDON, March 27 The financial correspondent of the Times, surveying the economic effects of the Austro-German union, points out that new clearing treaties and transfer agreements will be required. This will be the case particularly with countries which lent Austria money, including Britain. The British Government guaranteed £14,000,000 worth of Austrian bonds, yielding £<300,000 a year. It is estimated that British investors hold £11,000,000 worth of these. It remains to be seen how the new masters, of Austrian finance will deal with these obligations. Ore and Timber Resources The correspondent recalls Germany's shortages of various products and expresses the opinion that Austria's iron ore production of 1,800,000 tons annually can easily bo increased. This will greatly assist Germany, while Austria's timber will make Germany almost self-sufficient in that respect. Nevertheless, part of the timber and wood-pulp industry is in British hands.

The correspondent adds that Austria is of doubtful value in agricultural produce, as she already imports 10 per cent of her oats and barley. Austria's efficient textile, motor and rubber industries seam to be a liability rather than an asset to a country holding peculiar views regarding; rubber and textiles. Austria's tourist traffic, which yielded £7,000,000 last year, is bound to suffer, affecting her balance of payments on which interest on foreign loans depends. Ominous Factors in Situation The indirect effects of the union are overwhelming, adds the correspondent, drawing attention to Mr. Churchill's speech in the House of Commons on March 14. In addition to the economic isolation of Czechoslovakia, which may be possible at any moment, the normal trade channels of Rumania, Yugoslavia, Hungary and Bulgaria can be obstructed, causing most serious embarrassment. 1 Even more ominous is the fact that countries in Central and South-east Phirope are so dependent on the Austrian market that they tend to become, even more than at present, email satellites of the German system unless a determined effort is made to liberate them from German economy. Czechoslovakia, particularly, is in a difficult position and is likely to lose her important trade with Austria.

EXPELLED JOURNALIST "AUSTRIA A PRISON" MANY SEEKING ESCAPE (Received March 29, ft.s p.m.) i PRAGUE. March 29 The Vienna correspondent of the Daily Telegraph, Mr. G. E. .R. Gedye, who was ordered by the Nazis to leave Austria, has arrived in Prague. "Austria has become a prison from which hundreds of thousands want to escape but cannot," said Mr. Gedye. "Except from the Nazis, 1 received envious congratulations rather than condolences. Nevertheless, it is one thing to want to leave Austria and another to get away, as a police permit is necessary to leave the country." TRIAL PENDING FORMER CHANCELLOR NATURE OF THE CHARGES VIENNA, March 28 The authorities are preparing a case against Dr. Schuschnigg, the former Austrian Chancellor. It is expected that he will be tried in-the Supreme Court at Leipzig, where Dimitrolf and Van der Lubbe were tried in connection w'ith the Reichstag fire. Dr. Schuschnigg will not only bo accused of intending to falsify the Austrian plebiscite, . but will be held responsible for a miscarriage of justice in connection with the trial of Otto Planetta, charged with the murder of Dr. Doilfuss, which was held while Dr. Schuschnigg was Minister of Justice.