Evening star., 1940-06-23
Little Hope Is Held
For Large Exports 10
Europe Immediately
Successes Of BIitzkrieq
Cut American Trade
Seriously in Continent
BY OLIVER MCKEE.


conquered territory in Europe, Com
merce Department experts here see
little chance in the near future
for any large sale of American
products on the continent of Europe.
In 1888 the continent, excluding the
United Kingdom, bought about
$800.000,000 worth of American
goods.
With the exception of those in
Portugal and small sector along
the northern coast of Spain, prac-
tically every continental port is
barred to American flag ships under
the Neutrality Act. The British
Navy continues to maintain a tight
control over shipments carried in
neutral vessels. The Nazis have
taken over most of the French
channel ports, so commerce routed
through these ports must face the
British blockade. Both the Medi-
terranean and the Baltic are closed
to American flag ships, and neutral
vessels in these waters must reckon
with mines and other hazards of
combat area.
France was one of the largest
European markets for United States
exports. Since the outbreak of the
war last September, our exports to
France have showed a sharp in
crease, mainly due to the purchase
OF war supplies. Exports of war
materials to France will now stop.
More Exports for Britain.
According to Commerce Depart
ment figures, the United States ex-
ported to Great Britain goods valued
at nearly $50, o,00o,0OO in May, slight
reduction over the April figures.
With the collapse of France, the
United Kingdom is expected to in
crease its purchases of United States
airplanes and other military sup
plies. AS long as the sea lanes re-
main open and Britain holds out
against the Nazis the United King
dom will remain an important
market for United States exports.
In 1888. our exports to the United
Kingdom were valued at more than
half billion dollars.
Among the casualties of the war
are the trade agreements negotiated
by the United States with European
countries. On April %, 1899, the
United States suspended its recip-
rocal trade agreement with Czecho-
Slovakia, following the acquisition
OF that country by Germany. In
addition to Czecho-Slovakia, the
United States has reciprocal trade
agreements with Belgium, Sweden.
Switzerland, Holland, France and
the United Kingdom The Nazis
have conquered Belgium and Hol-
land, and the national economies of
these countries are controlled by
Berlin. A suspension of the agree
ments with Holland and Belgium
seems likely. France has now been
added to the list of conquered
nations, so the fate of another trade
agreement hangs in the balance.
The United States had no trade
agreement with Poland, an earlier
victim of the Nazi blitzkrieg. Fin
land, Sweden and Switzerland are
still independent nations In the
long run, however, all three seem
virtually certain to come under the
economic domination of the totali-
tartan powers, whose system of
barter, and rigid government con-
trolls runs counter to the Hull
reciprocal trade agreement program.
Britain Restricts Imports.
Though the trade agreement with
the United Kingdom still stands, the
British government, under the
emergency demands of war, has i'm
posed restrictions on imports that
have made imperative most of its
provisions. Britain is concentrating
its purchases in the United States
on goods and materials needed for
national defense, drastic curtailing
imports of non-essentials.
That Hitler, in imposing his
economic will on the conquered ma
tions, will insist that these coun-
tries buy as large quantities of Ger
man goods as possible is the general
expectation of experts here familiar
with the NaZi system and the eco
nomic philosophy on which it is
based. Before the war, both in
Europe and elsewhere, Germany was
leading competitor of the United
States in many export markets.
Germany, for example manufac-
tured automobiles, typewriters and
other specialities that held an i'm
portant place in our exports. With
the Nazis IN the saddle in Europe
American exporters, after the war,
will face even greater competition
than they have in recent years.
During the first six months of the
war, United States exports to both
Canada and Latin America in
creased by approximately At per
cent in value. Exports to Europe
gained q per cent and those to Asia
80 per cent over the corresponding
six-months period in 1889. In
the character of the trade, the prin-
cipal changes were substantial gains
in cotton, metals, chemicals and
aircraft exports and declines in to-
bacco, grains, fruits and automo-
biles. Exports to Germany and
German occupied areas dropped to
small amounts during the first
month of the war. and they have
remained at negligible levels ever
since During the first six months