Evening star., 1939-09-06
Southeastern Nations
Unwilling 10 Boost
Reich's
$500, 900, 900 Import
Business Prize in
Old Bottle
BY the Associated Press.

By the Associated Press.
BUDAPEST, Sept. 6.-The Euro
pean war threatens to loosen Ger
many's economic strangle-hold on
Southeastern Europe, trade experts
said today, and may give Italy a
chance to turn the tables on her
axis partner in their. old battle for
markets.
Although bound by political and
military ties, Italy and Germany
have fought like tigers for a $780,
100000 import business in this Sec
tlon of the continent. But it was a
fight in which victory-about so per
cent of that trade-went to Berlin.
Premier Mussolinis Ethiopian
campaign and the economic sane
tions taken against him by other
powers gave Adolf Hitler's travelling
statesmen the opportunity to get the
lions share of the rich business of
Hungary. Yugoslavia, Greece, Ru-
mania. Bulgaria and Turkey four
years ago
The present war, by putting a
stop to exports from Germany to
this section. gives Mussolini's drum
mers virtually clear field.
Although Germany has bought
more than she has sold down here,
her trade policy has been one of
barter-trading ornaments and ma
chinery for oil, tobacco and agricul-
tural products.
Needs Own Steel Now.
But now Germany no longer can
help rearm Southeastern Europe,
and she also needs all her own steel
and machinery She naturally wants,
more than ever, the products of this
section as war supplies. But the
only way she can pay is in credits,
and they are not wanted here.
Meanwhile Italy, as long as she
remains neutral, is in a perfect
position to scoop up this trade. She
has need of most of the goods Ger
many has been buying from the little
nations and can pay in goods those
nations have been getting from Ger
many
Evidence of the reaction of South
ern Europe to this new situation
is seen daily in all six countries.
For example, Turkey just announced
she would not renew her trade
agreement with Germany which
expired August 81 Nearly all the
oil r,oti0nc
neutrality stand, but added that
they are ready to ship to all old
customers capable of carrying on
trade relations.
Economic observers see in these
announcements an open bid to neu-
trail Italy to send statesmen and
buyers and make trade agreements.
Express Relief.
While concerned with the loss of
German business, economists of the
little nations express relief that
German domination of Southeastern
Europe thus may be ended. Poll
ticians repeatedly have pointed out
the danger of economic ties binding
these small nations to Germany,
which through them was getting
control of whole corner of Europe.
Frequently complaints also have
come that Germany was charging
more than the world price for goods
bartered, that out-of-date arma-
ments and machinery were sold
here and that Germany discouraged
attempts of the smaller nations to
develop Industries which would COM
pete with similar German concerns.
In Hungary, where the government
has taken strong methods to check
Nazi parties, 48 per cent of all i'm
ports come from Germany and so
per cent of exports go there. In
Rumanla, which has fought what
some OF her statesmen call too close
commercial ties with Germany" 48
per cent of imports are German and
IS per cent of exports go to the
Reich. The figures for Yugoslavia
are. imports, SO per cent; exports, 49
per cent.
Bulgaria's Figures.
In Bulgaria, which sells most of
her main crop, tobacco, to Germany,
81 per cent of imports are German
goods and 40 per cent of exports 20
to the Reich. Figures for Greece
are, German imports, 81 per cent;
exports to Germany, 43 per cent;
Turkey, imports, 81 per cent; ex-
ports, Al per cent.
AS result of the great squirt in
trade with Germany in recent years,
the small nations now find that with
Germany at war and unable to ship
them goods, they have millions of
dollars of unusable German credit
and say they are unwilling to in
crease this credit by shipping more
to Germany.
II Italy remains neutral and takes
the place of Germany in the eco
nomlc picture, the change may have
profound effect on the political and
military attitude Of the Southeastern
European nations.
The only fear in diplomatic cir
cles was that Germany's need for
Southeastern Europes wheat. oil
and other products would be so great
that she might be tempted to force
FIJI stems tn oct then,