TRADE WITH TURKEY

Otago Daily Times, Issue 24492, 28 December 1940, Page 7

TRADE WITH TURKEY

: IMPORTANCE piPHASISED ;' . ■ v . .LONDON, Dec. 5. Britain has seriously challenged Germany's economic > domination of south-eastern Europe by concluding a financial agreement with Turkey. :Uhder ; the- agreement,' Turkey'yHU the benefits of; the- British Empire's n world-wide , ; economic system, and'will haye Britain instead of Germany as her best customer; ■ Payments between Turkeyand the sterling area will be made at the existing Turkish exchange rate, and special accounts will be established. The agreement-comes into force immediately.! ; - Britain will .spend bartering, like Gerniahy-fbn 'the purchase of- Turkish agricultural produce, which' will be extoemely valuable for supplying the forces in the Middle East.. Turkey in return will be able to buy'a vastly greater proportion of her needs from Britain, particularly cotton and woollen goods for the peasant population^. Previously 50 per cent, of Turkey's exports went to Germany, and only 20 per cent, to Britain. NOW'these figures will be greatly changed.. It is considered that the agreement has been reached at a particularly opportune moment, because it ii learned that Germany was. contemplating making tempting trade offers to Turkey. The political importance of the agreement is emphasised. Turkey has once more expressed her determination to stand by her alliance with Britain, and has shown her distrust of Germany and the German method of obtaining goods without paying for them. The agreement will deprive Germany of muchneeded war goods and reinforces the stranglehold of the British blockade.