Evening star., 1939-10-26
Free Port Facilities
AT Trieste Sought
By Nazi Mission
New LoophoIe Needed
For Imports Shipped
By Allied Blockade
By JOHN T. WHITAKER,

Chicago Daily News Foreign Correspondent
ROME. Oct. 26.-The German
trade mission negotiating in Rome
and Milan has informed Italy that
it counts on free port facilities at
Trieste. Italian shipping center in
the Adriatic, for the major part OF
the imports it hopes to slip past
the British-French blockade.
Austria and Czecho- -Slovakia in
their day enjoyed free port rights
at Trieste and the Germans argue
that the Italians must continue
these facilities for the Germans.
Most contraband for Germany
now passes up the Danube Canal
but this canal is frozen over about
the end of December. The Germans
ask that when this loophole is closed
Trieste and Fiume shall serve as
tunnels for Balkan shipments and
transshipments.
Political Pressure Noticeable.
The arrival of the German mis-
Sions at Milan and Rome is ac-
companied by considerable political
pressure noticeable here, but sus-
pension of the talks and a promise
that they will be resumed reveals
that serious economic difficulties
that divide the Italians and Ger
mans.
Germany already owes Italv
000,O00,000 lire (about 100000, ,OOO)
under the clearing agreement. Ger
many cannot afford to ship ma
chimes to Italy in payment, and
there are no more German tour
lists to right the balance.
Germany has taken Draconian
measures where the war prevents
her from delivering machinery con-
tracted for by Italy. Berlin has
sold German patents to Italians.
and one Milan concern is already
preparing for the manufacture of
pneumatic circuit breakers under
the patent of German electric
company, while another has a pat
ent for a steam control apparatus.
The trade mission has offered a
further sacrifice, it is understood, in
order to move freight from Trieste.
Trade through Trieste is virtually
all involved in clearing agreements.
so that freight has not been paid
In cash. The Italians are now de-
mandlng cash instead of an ac-
counting under the clearing system.
Italy Offered Nazi ShinS.
Since the Germans have no cash
1t is learned that they proposed
that Italy should take over q Ger
man ships which lie in Trieste Har-
Dor. The Italians declined. Now
the Germans are talking with the
Rumanians and Hungarians, and
the former are said to be examining
the German ships today with a
view to acquiring several in pay
ment of freight charges over the
Rumanian railways for goods
shipped to Germany.
The truth is that the Italians
are embarked on a policy of cash.
and-carry. The country needs cash
and raw material and has no ad-
vantage whatever in selling to
bankrupt Germany. Italy has al
ready doubled her trade with the
Balkans by curtailing shipment to
Germany, and the fruits and agri-
cultural products normally sent
there are being shipped now to
South America. Pears, peaches and
plums have gone already to Brazil
and Argentina on the Neptunia and
Oceania. Italian shipping in the
North Sea and the Baltic has been
resumed, but is not allowed to touch
belligerent ports-an effective meas
ure of the policy of cash-and-carry.
(copyright. 1899, BY chicase
Daily News. Inc.)