GERMANY’S PLANS

Poverty Bay Herald, Volume LXV, Issue 19684, 16 July 1938, Page 7

GERMANY’S PLANS

VAST CUSTOMS BLOC NORTH SEA TO BOSPHORUS LONDON, July 7. The formation of a customs union, in effect if not by formal treaty, from the North Sea to the Bosphorus may be the outcome of German moves, says the Berlin correspondent of the Times. When the Regent of Hungary, Admiral Horthy, visits Berlin in August, Germany may offer Hungary, which sends two-thirds of her exports to Germany, the closest economic co-operation. Italy may join in this plan. The offer would then be extended to Yugoslavia, Rumania, Bulgaria, and, possibly, Greece and Turkey, with the argument that, if they stand aloof, they will be economically isolated, while joining the economic bloc will mean prosperity. Czechoslovakia is an industrial country, and sends to Germany only 20 per cent of her exports. She is an obstacle to the pact, and this partly explains Germany’s concern with the Republic’s future status. Under the German-Polish trade treaty, Poland’s coal exports to Austria were raised from 784,000 tons to 1,000,000 tons a year, at the expense of; Czechoslovakian plies. Polish coal must be sent by way of Germany, instead of by the shortest route, which is across Czechoslovakia.