TRADE BLOC OF NINE POWERS

Southland Times, Issue 23540, 21 June 1938, Page 7

TRADE BLOC OF NINE POWERS

Italian And German Scheme

EVENTUAL CO-OPERATION WITH JAPAN

LONDON, June 6.

Plans for an Italian and German economic league and the building up of a system bringing Spain and the central and south-eastern European States into a half-closed unit, eventually joining with the Japanese Empire, are under consideration in Germany, says the Berlin correspondent of The Manchester Guardian.

The object is to place countries producing raw materials in the same position towards Germany as the Dominions occupy in relation to Britain. The associated States would be united economically by preferences and financially by exchange control. The Germans claim that Signor Mussolini has admitted that Germany’s interests include the Mediterranean, in addition to South-Eastern Europe. Joint plans include the maintenance of a special position in Spain as a first major step. _ . Nine countries would be associated — Italy, Germany, Spain, Albania, Hungary, Yugoslovia, Bulgaria, Greece and Danzig. Apart from certain metals obtainable through ordinary commerce with outside countries it is asserted that the league would be virtually self-supporting. Preference duties would be equal to a reduction of tariffs. Where preference did not suit the interests of industry and agriculture in member countries quotas would be used.

The nine-Power group would be open to the adhesion of others, especially Die “yen bloc.” The Japanese Empire, Japanese-controlled parts of China, Turkey, Poland, Rumania, Portugal and the Portuguese colonies are also regarded as possible partners. The chief obstacles, apart from sterling and cash trade competition are Czechoslovakia and Turkey, where Russia and Britain have appreciable interests. German commentators resent the Anglo-Turkish agreement as being both an economic and political intrusion. Ttye creation of a central credit institute for the new league is mentioned—this might enable Italy and Germany to meet British and French competition.