Evening star., 1939-05-18
British-Rumanian
Agreement Devoid Of
Political Element
Business Is Sole Bosis
Of Fact for Loan and
Wheat Purchase
By WALTER DURANTY.

BUCHAREST, May 18 (N.A.N.A).
There is all the difference in the
world between the British and the
German economic agreements with
Rumania
The British agreement is an hon.
est-to-goodness business arrange
ment-rather too good business for
the British, the RumanianS ruefully
remark, although they admit it was
honeSt-WhereaS, in the German
agreement, the business side is COM
pletely subordinated to its strategic
and political objectives.
All credit to British honesty and
good old business as usual" Wheth-
er the war has begun or not. Yet it
Is worthy of remembrance that the
outcry of 'ultimatum" about the
German pressure eXerted on March
20 in Bucharest in order to get the
agreement signed quickly, after
more than a month of discussion,
was first of all raised in London.
And London took it so seriously that
Britain appealed to Soviet Russia
for assistance
This so-called "ultimatum" was a
bold diplomatic stroke by the Ru-
manian Minister in London, M.
Tilia, with the assistance of some
friends in London-Who did not in
clude Prime Minister Chamberlain.
The Rumanian Minister knew we'll
what the real aim of Germany was
and what jokers were hidden in the
agreement. So he gave out state
ment to the press, to small and Sc
lected press. He did not mention
the word 'ultimatum," but the head
lines took care of that.
The Rumanian Minister risked his
official head and failed to stop the
agreement, which was signed within
a few days. But he brought it to
world attention and his move led
indirectly to the beginning of Anglo
Russian negotiations, which, if they
have done nothing else, have served
as spur to the Kremlin-and the
world will shortly see that spirited
creature do quite a lot of curvetting
M. Tilia was summoned back
home, but he did not lose his head
and perhaps he may have been
complimented, unofficially
Then came the British trade mis-
sion to Rumania and, while it was
here, the British guarantee to Ru-
mania. and hopes scared high. But
the British said, business is bet
ter" and that was all they did
They looked shocked at the mere
suggestion that any trade agree
in the world might have an ulterior
purpose or aims that were not just
trade. They gave a credit of f,5-
100000, but only to buy British
goods. They rejected Rumanian
proposals that it be doubled in or
der to give Rumania a sterling fund
to balance exchange, whose fluctua-
tionS are one of the obstacles to
Anglo-Rumanian business. They re-
fused even to allow the Rumanians
to use any of the f5,000000 for that
purpose. even temporarily.
Rumanian Wheat Prices High.
They agreed to take 100000 tons
of the next Rumanian wheat crop
only at world market rates, which
is not much help to Rumania, as it
already has more than 100000 tons
of unsold surplus wheat from last
year. Rumanian prices are so much
higher than the world market that
the Rumanian government must
pay nearly 100 per cent-of course,
in its own currency-in subsidies to
farmers if the grain is to be sold at
world market rates
Throughout the deal, the British
played fair, but they played it right
close to their chests. and they got
1t seems, what they came fora
rather small but encouraging pros
pect Of increased Anglo Rumanian
business. The London Times kindly
called it "a useful piece of work
AS if Germany meanwhile had not
taken a vigorous step to put Ru-
mania in her pocket and round out
its favored geographic position by
strategic and political advantages.
What is more. the Germans lost
no time in getting to work. There
is a modest clause in their agree
ment stating that it should go into
effect 'provisorily" from the date OF
signature, without waiting for its
ratification. And go into effect il
did, with a rush of German experts
and instructors and explorers
spreading over the country like a
flood and buzzing like bees with
projects. The Rumanians gasped
for breath and into their open
mouths old Dr. British Business put
the small round pellet of business
as usual" Nourishing. perhaps, but
one wonders if it will cure Ru-
mania's grievous malady.