ECONOMIC EFFECTS

Otago Daily Times, Issue 24336, 28 June 1940, Page 7

ECONOMIC EFFECTS

FRENCH ARMISTICE POSITION OBSCURE EXTENSION OF BLOCKADE (British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY, June 26. (Received June 27, at 7 p.m.) The economic consequences in France of the armistice with Germany and Italy are at present obscure. In normal times France imported cereals, fruit and meat to a moderate extent, and fertilisers and feeding stuffs in large quantities. Economic authorities point out that every effort was being made before the war to supply these deficiencies from the French colonial Empire. Four million tons of phosphate produced by French Northern Africa were mainly exported to France. The future position of her colonial possessions, therefore, must have a very important effect on the economy of France herself. It is reported that French coal mines were mostly flooded before or during the German occupation. Important stocks of petrol were destroyed in the north in the first weeks of the invasion. The necessity of carrying on the French central services will make large inroads on the very considerable stocks which remained and have now come under German control. Raw material for the great French textile industry came from the Birtish Empire and the two Americas and are likely to be affected by the imposition of the British contraband control on Germanoccupied French ports. It is officially announced that the British blockade has been extended to French ports occupied by the enemy. All shipping leaving or bound for French ports is liable to be s'opped and examined under the contraband control methods. This also applies to ports on the northwestern coast of Spain which are under German domination.