The Waikato Times TUESDAY, JULY 11, 1939 EXPORT CREDITS WEAPON

Waikato Times, Volume 124, Issue 20853, 11 July 1939, Page 6

The Waikato Times TUESDAY, JULY 11, 1939 EXPORT CREDITS WEAPON

Britain's advantage over Germany in the sphere of foreign trade —the possession of real money —was never more apparent than it is today. The realisation that this is so, given point by the fact that the British Overseas Trade Guarantee Bill increases to £60,000,000 the limit of export credits which the Board of Trade may advance, has stirred the German Press to unprecedented outbursts of fury. Nazi newspapers are calling Britain the “Slave Driver of Europe,*’ the “Financier of Death,” the payer of “millions of pounds for the lifeblood of others” and the provider of “State money to buy up whole nations.*’ The German news agency declares that “Britain's cold-blooded purchases of European cannon fodder for England’s injustice and perfidy expresses the absolute shamelessness of capitalistic democracies.”

Such outpourings of deep feeling indicate that Germany has been struck a vital blow in a vulnerable spot. Germany’s bitter complaint brings before the world the question whether Britain is using her superior financial strength unfairly to checkmate Germany’s expansion programme. Memories are not so short as that. For years Britain has been negotiating—almost pleading—with German political and industrial leaders to take only their fair share of the trade of Europe by accepted and honourable methods of competition. The Nazi reply was to pounce upon neighbouring countries with political threats which extorted outrageous trade concessions, or, worse still, complete capitulation to the forces of the Reich. Austria, Czechoslovakia and Memelland went that way, and other States are still trembling before a Power that demands not only trade but political vassalage as well. Britain in her military weakness was too hesitant and yielding, and Germany’s sphere of influence grew. Then, two years ago, the warning came from Britain that she had another weapon which she was loath to use but which would be brought into action, in selfdefence and for the defence of other weaker nations, if Germany persisted in her “smash and grab” tactics. Germany persisted, and so Britain’s export credits resources were mobilised. That is the brief outline of the circumstance that has led to the present violent outburst by the Nazi-controlled Press. Britain advances credits for the purchase of goods in Britain, so making essential requirements available to other countries and at the same time strengthening her own economic position. Germany cannot reply in kind. She can only offer barter agreements which have strict limitations. She has spent her substance in perfecting her military might in the hope of gaining, economic influence by methods which differ from those of Britain. Thus “perfidious Albion” is accused of remaining “true to her tradition” by “trading with the blood of protected States.” Germany, despite her military might, is galled to see the “protected States” moving into a combination of peaceful countries, trading legitimately and turning aside from a Goliath who says, “Do my will or perish.” It is not good for the world that Germany should suffer economic collapse, and all nations hope that she may be saved by a return to honourable methods, but in the meantime she has left Britain no option and has brought her troubles upon herself.