The Washington herald., 1921-01-02
Polish German Trade Agreement.

a MERICANS will doubtless be sur
p 4 prised to learn that a prominent
Polish statesman and former cabinet
member is urging his government to con-
clrde trade agreement with Germany.
1t seems particularly surprising in view
Of the bitter feeling against Germany in
Poland and the controversies arising from
conflicting claims and clashes in areas
formerly German.
Another cause of friction is the plebiscite
area of Upper Silesia, which the Poles al
lege the Germans are prepared to occupy
by force. The possession of the coal mine.
IN this area is, of course, of tremendous
importance to both Poland and Germany
and accusations of illegal methods en-
ployed to determine the outcome of the
plebiscite appear almost daily in the press
of both countries
AS m others of the new or newly de-
limited states Of Central Europe, political
jealousies and racial antagonisms have
brought about the erection of trade bar
riers and commercial restrictions which
have prevented the natural and desirable
interchange of commodities and thereby
have seriously impeded the re-establish-
ment of stable economic conditions
While Mr.. Grabsk, the proponent of the
German trade agreement, is a leader of
the National Democratic party, which has
always been anti-German, he is keenly
aware of the critical situation in Poland
and realizes the necessity of commercial
relations with the neighboring states
worse than last year. While by no means
the majority of the population received
the fun ration of flour of US grammes last
year, a majority were able to supplement
what they did receive by purchase in the
free market, since producers had quantities
for sale after filing government requisi-
tons
This year no such surplus exists and
market prices are already prohibitive for
most people, the ratio to the government
reqursition price being much higher than
last year in spite of sevenfold increase in
the requisition price. If the food situation
for the urban population is to be as good
as last year approximately 10000 tons Of
grain must be imported; 100000 tons will
Dc uCICoSAIJ " PACfCAI dSulC ouAACAlASs
While the government is disposed to
put food purchases before everything else,
the very limited exports and reduced re-
xfittances make the quantity of foreign ex-
change available small and coal and fer
tihzer must be purchased if food conditions
are to be improved next year. The avail
able supply of coal for this winter is said
to be scarcely I8 per cent of the needs.
Poland is an industrial country but it is
urgently in need of machinery as we'll as
raw materials before it can produce sur
plus for export m exchange for the food
stuffs required for its industrial population.
The German market is convenient and
can supply Poland with certain commercial
products, especially machinery, which are
essential to her industries. If the two
countries can subordinate their political
controversies and remove the artificial COM
mereial restrictions they have made, both
viii be benefited.
Ii is not impossible that NJ. Grabsld
cherishes the hope that his announcement
may not be without its effect in western
countries whose financial interests have
, been a little hesitsnt about advances to
Poland until they are more clearly con-
, vinced of the soundness of the Polish gov
ernment's financial policy and that there
Is no danger of Poland's becoming in
vofved IN further war by aggressive i'm
perialists. The former minister may hope
hat the possibility of commercial rap
prochement with Germany will cause west
ern business men to take a more active
interest in Polish loan.