FEELING THE PINCH

New Zealand Herald, Volume LXXVII, Issue 23616, 28 March 1940, Page 11

FEELING THE PINCH

DENMARK AND SWEDEN TRADE AND CURRENCY IMPORT CONTROL MEASURE By Telegraph—Press Association —Copyright (Received March 27, p.m.) LONDON, March 27 The economic impact of the war on northern neutral countries is reflected in Denmark's imposition of taxes to combat her increasingly adverse trade balance, and also in Sweden's announcement of measures to check the alarming drainage of foreign exchange. The Prime Minister of Denmark, M. Stauning, speaking in Parliament, expressed the nation's deep sorrow and concern at the sinking of Danish ships, which was threatening the nation's economy. The first seven months of the war had caused great economic difficulties, he said. The rise in the price of imported goods had exceeded the rise in export prices, resulting in an increasingly unfavourable trade balance. M. Stauning said the financial situation had deteriorated because of the large expenditure on defence and also on measures for ensuring neutrality. He added that the financial year 1940-41 would probably end with a deficit of £10,000,000. It is officially stated in Stockholm that coffee and tea are being rationed and about 200 luxury import items will he subjected to Government control from to-morrow in order to conserve foreign exchange. Swedish- currency reserves have shrunk by £11,000,000 since the outbreak of war. representing one-third. Commodities now subject to regulation represent 7\ per cent of Sweden's total imports.

FINANCIAL AID AMERICA TO ALLIES WRITER STRESSES NECESSITY i NEW YORK, March 2G i The necessity for the United States to give financial aid to the Allies in ]94l if she wishes to continue exporting to Britain and France is foreseen by the Washington correspondent of the Journal of Commerce. Jf she wants the Allies to win America cannot merely sit hack and reap profits without accepting some sacrifices! "The main drive for financial aid is to be expected from within the United States, where American business and agriculture interests cry out for assistance to maintain the markets," says the writer. "Allied represejitatives have not made representations, but are quietly pointing out that war trade cannot continue unless the United States, by Government loans or credits, is willing to fortify the diminishing Allied dollar ] assets." ! "FLYING BULLET" AMERICAN AEROPLANE AVAILABLE FOR ALLIES GREAT POTENTIALITIES 'Received March 27, 5.35 p.m.) NEW YORK, March 26 I It is stated in Allied circles that the inter-departmental committee has decided to release to Britain and France the Army's new Curtiss PI6 interceptor aeroplane known as "the flying bullet," says the Washington correspondent of the New York Times. This machine is considered to be superior to anything in the possession of foreign Powers. It is an improvement on the PIO which was released in December, and is described as being at least as fast as, if not faster than, the German Messerschmitt, with greater flying range and manoeuvrability. As it has only been experimentally developed probably it will not be in production before May 1. The French are understood to be particularly anxious to obtain this type. MOVE FROM BERLIN AMERICAN TREASURY RESTRICTIONS ON ATTACHE WASHINGTON. March 1G Because of restrictions imposed by the Nazi Government, the United States Government has removed the North Europe headquarters of the United States Treasury from Berlin to Stockholm. The German Government denied a Treasury attache, Mr. Irwin May, and his two assistants freedom to travel within the Reich or to visit neighbouring neutral countries. It failed to facilitate Mr. May's regular investigations of GermanAmerican trade or to grant liirn any diplomatic or consular immunity from the strict wartime travel restrictions. Many people in Washington believe that Germany was trying to cover up suspected practices of evading the Allied blockade by shipping goods through neighbouring neutral countries, WORKERS DISMISSED COAL STRIKE SEQUEL SYDNEY, March 27 As the result of the coal strike 500 men have been dismissed from the Broken Hill Proprietary's works at Newcastle, and it is expected that the works will coast! production on Monday or Tuesday, except in departments vital to the nation's war effort. It is understood that thousands of men will go off after the week-end. Two hundred men have been discharged from Lysaght's works, Wollongong. BRITISH PARLIAMENT ACT TO EXTEND TERM LONDON, March 10 A special Act will bo passed this year to prolong the life of the present House of Commons for the duration of the war. Normally, a general election would have been necessary before November. The last election was held in November, 1935,