ECONOMIC GAINS

New Zealand Herald, Volume LXXVII, Issue 23658, 17 May 1940, Page 8

ECONOMIC GAINS

WAR IN LOW COUNTRIES PROBLEM FOR GERMANY RAW MATERIALS STILL NEEDED By Telegraph—Press Association—Copyright British Wireless LONDON, May l"> While fully recognising that the Nazi invasion of the active trading and industrial areas of Holland and Belgium must result in sharp economic losses to Britain, the Financial News emphasises that it. would be foolish to under-est imat e the forces which have driven (iermany to reject the path of limited warfare and economic consolidation in an attempt at a decisive blow, or to overstate the value of economic prizes that the invasion may bring the (Jerniaus.

The Financial News points out that Holland iclies on imports both, for her extensive transit trade, from which (lermany has drawn such ample benefits, and for the support of her manufacturing industries. The Allies may cut off her imports if the circumstances demand. Without them, the balance of Dutch manufacturing and commerce would lie distinctly unfavourable. In Belgium the position in many respects is still less favourable to the invader. Heavy supplies are needed not only to provide raw materials for industry. but also to make available foodstuffs for the predominately industrial community.

Pressure of Blockade Altogether, fears of growing pressure from the blockade and the increasing weight of the Allied military output may have played some part in inducing the Nazi regime to disregard the economic balance-sheet and to concentrate upon a drive for speedy and conclusive military action. While Britain is in a position to replace supplies hitherto drawn from tho Low Countries with those from overseas, the newspaper points out, supplies from Holland and Belgium and other colonial empires are vital to Germany's economic effort.

Assets Secured by Allies "Whatever the strategic position," adds the Financial News, "the balance of economic advantage is certainly in our favour. We have secured additional gold and foreign exchange assets, totalling some £300,000.000 —a sum not very far below the entire gold output of the Kmpire for two years at the current rate of output. We have probably secured negotiable dollar securities to the value of £100.000,000. "The Dutch merchant fleet comprises some 1.700.000 tons of efficient ocean-going vessels, roughly one-seventh of our own comparable tonnage at the close of last year. "But the real size of the contribution to the Allied war resources is not apparent until we begin to consider the economic resources of the Netherlands Indies and the Belgian colonies."

TANKS AT NARVIK SUCCESS AGAINST NAZIS DESTRUCTION OF AIR BASES NIGHTLY BRITISH RAIDS LONDON, May 15 The successful Allied employment of tanks for tin; first time in Narvik sector is mentioned in a Norwegian communique. It adds that the Germans are suffering from lack of artillery. South from Narvik the Germans were prevented from gaining a foothold at Mon.joseu.

The French officer in the liivrkvik district declared that after the arrival of Krench troops the Germans retreated at the rate of one kilometre a dav.

A Stockholm message says that many German air bases in Norway are reported to he in a state of destruction as the result of regular nightly Royal Air Force bombings.