BRITAIN'S ACTION

New Zealand Herald, Volume LXXVI, Issue 23512, 24 November 1939, Page 7

BRITAIN'S ACTION

" THE ONLY LANGUAGE " NAZI UNDERSTANDING HARDSHIP ON NEUTRALS (Received November 23, 7.30 p.m.) British "Wireless LONDON, Nov. 22 " Reprisal is the only language the Nazis understand," says the Times, which, in, common with the other newspapers, comments on Mr. Chamberlain's statement regarding the seizure of German exports. It is recalled that similar action was taken in 1915, after Germany had wrongfully declared that the waters surrounding Britain were a " military area." The present decision is generally regarded as the'only possible reply to an inhumane German practice. Trend of Neutral Trade The Financial News.,says thdfelack of foreign exchange makes Germany a bad buyer. As long as the sea routes to Britain remain open to traffic, the trade of the Oslo States, the Scandinavian countries and Holland and Bel-' gium will inevitably trend toward the Allies. Germany is short of all the commodities the Oslo States produce—iron ore, timber, bacon and dairy produce. If the indiscriminate submarine warfare were sufficiently intensified to render the North Sea impracticable for shipping the Oslo States would have no outlet but Germany for their products. In those circumstances Germany could make her own terms for payment. Effect of Minelaying If mine-laying were to continue to be as effective as during the past week, adds the journal, it would represent a real threat to British food supplies; and if it eventually made the Oslo States- become virtually dependent upon Germany for a market, the effectiveness of the blockade would be seriously weakened. Discussing the probable effect of the contemplated allied action against German overseas shipments, commentators note that after the application of similar measures in the last war German goods imported into the United States fell during the last six months of 1915 to between 4 and 8 per cent of the 1913 level, and after a year, had virtually disappeared. Fall of German Exports Germany has not published export figures since the outbreak of the present war, but the Nazis admitted that this trade had been seriously curtailed. It will now inevitably shrink further. The value of Germany's overseas shipments in 1938 totalled 1,208,000,000 reichsmarks. With the stoppage of this trade it may be expected she will endeavour to sell the surplus exports to her neutral neighbours, but these will be unable to supply her with foreign exchange in the same measure as the overseas markets. The currency of these overseas countries is also required to make trade with Germany's neutral neighbours more attractive than direct barter, which increases their economic dependence on Germany. , It is recognised in London that the proposed measures may involve certain inconveniences to countries adjoining Germany through which transit trade passes, but their basic industries will not bo adversely affected,' and may benefit. The depletion of German resources will, certainly result, and by effectively shortening the war, it is argued, a long-term advantage will accrue to neutrals. DUTCH EXPORTS HEAVY FALL IN OCTOBER AMSTERDAM, Nov. 22 Dutch exports during October showed a great decline. Bacon and lard decreased by 50 per cent, while exports of butter, cheese and milk were 30 per cent below those of October, 1938. FRENCH CO-OPERATION PARIS, Nov. 22 The Prime Minister, 31. Daladier, has announced the formation of an Inner Cabinet to direct economic warfare in co-operation with Britain.,