GERMAN BARTER PUNS

New Zealand Herald, Volume LXXVI, Issue 23356, 26 May 1939, Page 12

GERMAN BARTER PUNS

There has been as yet no reliable indication of any appreciable weakening in Germany's campaign for "guns instead of butter," but the news that the Eeich is seeking a huge barter agreement with the Argentine, involving the exchange of machinery valued at £1,250,000 for 50,000 tons of meat, suggests a realisation of the fact that nations must eat as well as arm. Germany's shortage of essential foodstuffs has already been reflected in a fairly extensive system of rationing, and such a position must inevitably force dissatisfaction, if not disillusionment, among her people. Nazi economics do not make for any great degree of freedom in international trade and the Argentine, closely associated as she is with Great Britain and the United States, may not have need for large quantities of German machinery. Nevertheless, the proposed barter agreement could conceivably serve a number of very useful purposes. In the first place, the Gei'man people would be better fed than they are to-day, while a diversion of supplies .from one of the great meat producing countries of the world would doubtless have a beneficial effect on market conditions. During the first three months of the present year, Argentine meat exports to London totalled 36,220 tons of beef and 3731 tons of mutton and lamb. Thus Germany is proposing to take from the Argentine more than the equivalent of three months' exports to London. Such a large order from a new consumer would have a direct influence on beef prices, and subsequently there would be an effect on mutton and lamb prices as well. Both New Zealand and Australia could be expected to benefit from an easing of the pressure which has forced Great Britain to restrict her importations of meat.