Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-01-26
Member of the Associated Press
Struggle for Oil

The issue between Germany and
the allies apparently is rapidly being
Joined in the Balkans. According to
latest news dispatches, the most
recent German demands upon Ru-
mania bring to head the diplomatic
campaign which has smoldered ever
since the war began and the British
blockade forced Germany to draw
more and more heavily upon the
resources of her southeastern neigh
bors.
German intentions are indicated
by developments of the past few
days. Reports earlier this week told
OF the presence on the Rumanian
border with Soviet Poland of German
police and troops, as we'll as railway
crews, and of the conclusion of a
German-Russian agreement for Ger
man administration of the railways
in the formerly Polish districts which
lie between the Reich and Rumania.
The delivery to King Carols gov
eminent of what is just short Of an
ultimatum to supply more oil to the
Reich-a life and death" matter for
Germany, as Rumanian sources
quoted the German emissaries-
gives new significance to these
preparations for stimulating the flow
to Germany of the all-important
petroleum, without which Nazi
bombers, tanks and other mechan-
lied army units can carry out no
victorious offensive on the western
front
Against this Nazi pressure the
allies, which financed many of the
Runlanlan oil wells, have not been
slow to act. They have told the
Bucharest government that any con-
cession to Nazi demands for in
creased expectation of oil will create
grave complications" in Rumania's
relations with Britain and France,
which have guaranteed the indie
pendence and territorial integrity of
King Carols realm.
The new German demands come
as surprising sequel to the trade
agreement concluded December 81
with Rumania, by which Germany
not only obtained an increase in the
export quota of Rumanian oil from
100000 tons month to 10000 tons,
but also readjustment of the leu
mark exchange rate, which cheap
ened Rumanian goods by more than
20 per cent for Germany.
What has impelled Germany now
to call upon Rumania for a still
larger quota, when it has not been
possible, owing to the frozen condi-
ton of the Danube, to transport to
the Reich anything like the full
quota under the December 81 agree
ment may be looked for in German
plans for a possible spring offensive,
in support of which it had been
planned to draw heavily on Russian
oil supplies. But the disorganization
of Soviet railway transport already
may have shattered German expec-
tations of substantial gains in oil
from the commercial agreement of
last August.
Germany apparently wants Ru-
mania to compensate for the made
quacy of Russian production, and
against this strategy the allies have
set themselves, with all their eco
nomic power, to defeat Nazi objec-
tives. King Carol faces dilemma:
Yield to Germany, which is the
closer and more dangerous threat, or
Cooperate with the allies, which
have the wealth to enrich Rumania
and stand the best chance of ulti-
mate victory in the war?
The struggle for Rumanian oil may
decide whether Germany launches
an offensive when winter breaks, and
may we'll affect the final outcome of
the war.