BRITAIN & TURKEY

Waikato Times, Volume 127, Issue 21304, 24 December 1940, Page 6

BRITAIN & TURKEY

FINANCIAL AGREEMENT CHALLENGE TO GERMANY TEMPTING TRADE OFFER (United Press Assn.—Elec. Tel. Copyright) LONDON, Dec. 23 Britain has seriously challenged Germany’s economic domination of south-eastern Europe by concluding a financial agreement with Turkey. Under the agreement, Turkey will share the benefits of the British Empire’s world-wide economic system, and will have Britain instead of Germany as her best customer. Payments between Turkey and 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 millions—not bartering, like Germany—on the purchase of Turkish agricultural produce, which will be extramely valuable for supplying the forces in the Middle East. Turkey is return will be able to buy a vastly greater proportion of her needs from Britain, particularly cotton and woollen gooas 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. u is considered that the agreement has been reached at a particularly opportune moment, because it is 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 much-needed war goods and reinforces the stranglehold of the British blockade.