Evening star., 1940-01-07
Economic Warfare
Holding Balkans
In Strang|ing Grip
Small Nations Strivina
To Meet Demands
Of BeIIigerents
By LLOYD LEHRBAS,
Associated Press Staff Writer.

warfare which is playing an i'm
portant and, perhaps, decisive role
in the death struggle between Ger
many and the Anglo-French allies.
The pounds sterling and francs
1avishly spent, the pyramiding
threats and pressure strains, the
trouble spies and propa-
gandists, and the revived traditional
jealousies of the land-hungry Bal
kans daily add fuel to the con-
flict they fear will leave the map
Of Southeastern Europe scorched,
charred and unrecognizable.
Germany's mounting demands for
more and still more food and
munitions. conflicting Russian and
Italian dreams of empire, and Anglo
French blockades and maneuvers
designed to isolate the Germans
politically and economically are
fashioning themselves into Balkan
nightmare.
The Balkan kings and dictators
are fearful of what may happen to
their kingdoms (and to them if
they are unable to satisfy the bellig-
erents' demands, maintain a safe
living standard for their populations,
or if they are caught on the wrong
side of the burning fence.
Mobilization Costly.
Political unrest sprouting from
their strangled trade and enforced
economies, racial minority dangers
famed by troublemakers, and en-
forced and ruinously costly mobiliza-
ton of armies add to the Balkan
headaches
The Balkans are engaged in fe-
verish diplomatic negotiations with
the objective of cooperating in a
pact guaranteeing their neutrality,
existing boundaries and govern
ments. All efforts to date, however,
have failed to materialize because
of the age-old feuds and unforgot-
ten dreams of expansion.
Meanwhile, all are making every
effort to stave off what may be their
zero hour by making every possible
concession to the belligerents' de-
mands, even at the expense of their
own discomfort and, in many in
stances, actual shortages of some
foodstuffs and materials.
The Germans have broadcast to
the world that their major 'aim in
Southeastern Europe is to have the
Balkan nations maintain peace and
neutrality so that they may con-
tinue supplying Germany with food
and munitions. Rumania's oil for
German planes, tanks and mechan-
lied equipment is particularly es-
sential to Germany's preparedness
for the spring.
German economic missions are
circulating through the Balkans
continuously with demands for big
ger shipments of oil from Rumania,
better exchange rates to purchase
Hungarian wheat, preferred treat
ment in barter trades for Bulgarian
tobacco, and speedier transportation
OF Yugoslav meats and metals.
Bow to German Demands.
The Balkans remember German
demands on ex-Austria and eX-
Czecho-Slovakia and openly express
fears that unless the demands are
met Germany may decide they are
no longer valuable pawns and sig
nal the Russians to move in, or
move in themselves.
All Balkan countries have bowed
to German demands, sending in
creased quotas of products and
granting Germany more favorable
exchange rates by as much as a
10 per cent increased value of the
mark.
Before the war, Germany domi-
mated Balkan trade, in several in
stances accounting for more than
half of the nations commerce, TAX
ing Balkan tobacco, wheat, raisins,
fats, oil and meat and paying for
them in iron, steel, coal, sugar,
chemicals and manufactured prod
ucts.
Blockaded by sea, severely handi-
capped in overland transportation,
and lacking foreign exchange, Ger
many is no longer able to purchase
and transport Balkan products in
quantities needed and-until now
has not been able to make deliv-
cries of German products to pay
for purchases.
In Turkey, for instance, NUM-
tions factory has not been able to
start operations because the Ger
mans cannot, or will not, supply
essential machinery to complete the
plant.
Greece Limits Building.
In Greece, all reinforced concrete
construction has stopped because
Germany has been unable to con-
tinue deliveries of steel girders.
Athens has three heatlesS and hot
bathleSs days a week because Ger
many has not maintained coal ship
ments.
Britain and France, in turn, are
applying economic pressure against
the Balkans through sea blockades
and heavy purchases Of products
from those nations that indicate a
friendly attitude"
Since Turkeys trade with Ger
many $50 to 60 per cent of its totaD
has been cut off by the blockade the
British and French have pledged
Turkey liberal economic and f1nan-
cial assistance.
In return for Turkeys signature
to pact guaranteeing passage OF
allied vessels through the strategic
Dardanelles. Turkey has been
granted armament, trade and cur
rency stabilization credits OF ap-
proximately 100000, 900.
In addition, the allies have made
heavy purchases of products former
ly sold to Germany, including ST.
O00, 1000 in tobacco and 10000 tons OF
raisins, Turkeys major export and
cash crops, and are now negotiating
for $4,000 tons more of raisins and
several shiploads of currants.
Trade and commerce are an i'm
mediate economic necessity for every
Balkan country and neutral observ-
Il