Evening star., 1939-02-14
u. Sherman Barter
Discussions Are
Confirmed in Berlin
Plons for Trading
With Midwest Formers
Declared Under Wuy
BY the Associated Press.


BERLIN, Feb. 14-Informed quar-
tiers last night confirmed WashinR1-
ton reports that negotiations for
barter deals were under way be-
tween Germany and farmers Of
Middle Western United States.
Germans regarded the deals with
some skepticism, however, in view
of what has happened in similar
cases in the past. American farmers,
foreign office circles said, constantly
were approaching the German gov
ernment with barter proposals.
Germans in Washington re-
ported that negotiations were
under way for extensive pure
barter deals with Germany in
which Middle Western farmers
and packers might exchange
their products for German-made
articles. Of.
cooperative farm organiza-
tons were reported to have ap- =
preached the German govern
ment with the barter proposals,
Germany replying she would be
glad to enter into arrangements
to take several hundred tons Of
lard and 10000 tons of wheat.
pure barter is permitted by a
regulation of the United States
Treasury and has been used by
California fruit growers. Secre-
tary of State Hull said last week
he did not object to pure barter
as long as it did not interfere
with his trade program
Complicated System.
All such bartering as that now
being considered goes through both
the German foreign and economic
ministries. It is based on a COM
plicated system of balancing pur.
chases known as 'inlandskontover-
fahren," or domestic account
method"
German goods would be subject
to a high duty, however, because
Germany does not have the advan-
tages of nations that have trade
agreements with the United States.
Similar bartering plans have been
tried in the past, first in 1896.
CHICAGO, Feb. 14-Packing In
terests here said today they knew
OF no pending barter deals with
Germany involving expectation OF
domestic lard and other meat prod
ucts although discussions of the
possibility of this type of business
have been under way at various
times.
Swift Il Co. representatives said
they had been approached some time
ago concerning the possibility Of
improving domestic export OF lard
to Germany, but that no negotia- =
tions were under way nor were any
contemplated.
Armour & Co. officials said Ameri-
can import interests at one time
had discussed the possibility of pay
ment for some made goods
through the expectation Of lard.
Plans Discussed.
r. H. Cabell, president OF Armour,
expressed belief the reports of barter
negotiations were based on the fact
that two packing houses outside of
Chicago were discussing plans to
obtain some German machinery and
paying for it with lard.
I understand several German
importers are working on the pro-
position. The big packing houses
are not interested in bartering but
in the sale of products at the market
rate"
The German Consul General E. L.
Baer and Horst Fricke, commercial
attache, said inquiry from Midwest
farm organizations as to the pos
sibility Of reaching the German
market had been referred to the
Embassy in Washington. The Ger
man representatives expressed belief
barter arrangements would be de-
sirable if the negotiations, could be
worked out. They declined to name
the organizations which had re-
quested the information.