GERMAN PROBLEM

New Zealand Herald, Volume LXXV, Issue 23175, 22 October 1938, Page 13

GERMAN PROBLEM

ECONOMIC CHANGES ACQUIRED TERRITORIES TRADE AND CURRENCIES NEW FOUR-YEAR PLAN By Telegraph—Press Association —Copyright LONDON, Oct. 20 It is believed that the important national work which it is announced is preventing Field-Marshal Goering from attending the Nazi Party's State ceremonies is the overhaul of the economic system of the Reich and the introduction of a second Four-Year Plan devised in conjunction with the Governments of southeastern Europe,,which will introduce parallel plans. Tho Daily Telegraph's Berlin correspondent reports that Germany's nationnl debt has doubled since December, 1932—the month before Herr Hitler came into power. Tho total is now £1,977,000,000, compared with £966.000,000 in 1932. Of the total, £1,080,(XX).000 has boen funded. Calculations omit the enormous invisible debt incurred in financing rearmament and other national tasks, regarding which figures are not available. The correspondent points out that the solution of tho problem of Germany's unhealthy export trade is not yet in sight. Significant in this connection is Dr. Funk's declaration to Chambers of Commerce demanding from industry the most careful attention to exports. In spite of tho demands of the inland markets no opportunity must be missed to increase exports.

The acquisition of Austria and Siuletenland has complicated the economic position enormously from the point of view of the Four-Year Plan. Sudetenland has brought a series of problems. Factories there are working in competition with old established Beich factories. In addition Sudetenlanders are cut off from natural supplies, which must be imported and n further drain will be the compensation payable on Czech crown notes current in Sudetenland, which will be redeemed against reichsinarks at a rate higher than the official exchange. The unwanted Czech currency will be disposed of only by purchases from Czechoslovakia, which will react unfavourably against German trade.