Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-19
FRANCE-GERMANY
TRADE UNFRAMED
Result of Elections Believed
to Have No Influence on
Economic Relations.
BY Radio to The Star.

BY Radio to The Star.
| PARIS, France, September 19.-"The
J results of the German elections can
perhaps hinder a Impeachment be-
tween France and Germany in the
| purely political field, but they cannot
| have a serious influence on the eco
nornic relations of the two countries,
and we still believe that economic rela-
lions command the political ones" a
leading French tndustrialist declared
| today.
The conclusion of the European
steel cartel made Locarno possible" the
speaker explained. Dropping the so
called Locarno policy would mean the
prompt collapse of the steel cartel and
numerous other European or purely
Franco-German cartels and industrial
working agreements.
You may be sure that responsible
German induStrialistS will. like our
selves, do their utmost in order to
avoid such a misfortune, which, in
view of Americas growing competition
in world markets, would bring Europe
nothing but ruin and disorders"
This statement clearly reflects the
opinion of business men here who are
keeping cool-headed before what they
describe as AN outburSt of discomfort
caused by the temporary bad economic
situation of Germany, which will dis
appear as soon as conditions are again
normal"
Views of French Bankers.
The views of French banking and
business leaders can be summarized as
follows:
/. 1t is out of the question to drop
the European steel cartel, grouping the
steel interests of France, Germany, Bel
GUM and Luxembourg. On the con-
trary, the need for such an organiza-
ton is more evident today than ever.
The total output of the four coun-
tries amounts to about 3o,o0o,0eo tons
of steel per year. This tonnage, as
well as the quality of these European
products, give the cartel fair posi-
bility of competing with the Export
Association of America" which Is the
sales body of the United States Steel
Corporation and the Bethlehem Steel
Co, whose capacity reaches 100000
tons year.
If the European steel cartel disap-
peared, the disunited European manu-
facturers would be Immediately over
powered by the American Export Asso-
citation.
Far frem thinking of dropping it,
the members of the steel cartel intend
to make it stronger by the creation of
a common sales body similar to the
export association. This is impossible
now, owing to the depression in prices,
but the scheme is ready, and as soon
rs prices show an upward trend 1t viii
be built up.
1t is pointed out that German steel
industrialists are particularly anxious
to have such sales body created, be-
cause by checking the depression Of
foreign prices it will help them de-
crease prices in the German market.
thus making possible a corresponding
decrease in German wages.
"Cartel Policy" Gains Ground.
2. The cartel policy" is steadily
gaining ground in Europe, despite all
political quarrels.
1t can be said that nearly all these
cartelS, whose number keeps increas-
ing were based at first on Franco-Ger-
man agreement. For instance, the
chemical cartel, which was initiated
some years ago with the close CO.
operation of the French and German
industries, has been finally joined by
the Chemical Imperial Industries, Ltd,
a British chemical cartel, headed by
Lord Melchett.
Fifteen million German voters can
disregard such facts and elect right or
left fire-eating extremists, but respon-
sible German leaders are aware that
bellicose policy would soon destroy
these slowly built organizations and
plunge German, as well as European,
economy in chaos.
3. German exports to France are
steadily increasing During the first
six months of 1928 they amounted to
$50 900 900; in the corresponding period
in 1929 they totaled S120, 900 900; in
the same months in 1880 $4,000, 900.
On the other hand. French exports to
Germany decreased from $120 ,0O0, 600
during the first half of 1928 TO $SS,-
600, 900 in the first six months this year.
Would Germany deliberately quarrel
with a neighbor which Is so good a
client? In case Germany would adopt
an openly unfriendly attitude toward
France, the latter would be in position
to take Immediately retaliatory meas
ures in the field of trade. But French
business circles believe that Germany's
BLACK Sunday" will bring no altera-
ton of the present excellent economic
relations between the two countries.
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