Evening star., 1940-02-02
Germany Reported
Seeking Rumanian
Economic Alliance
Neutrality PIon First
Topic Before Session
Of Balkan Delegates
BY EDWARD KENNEDY,


Associated Press Foreign Correspondent.
BELGRADE, Feb. 2.-German
pressure on Rumania to obtain &C
ceptance of sweeping plan to
make her industries, petroleum pro-
duction and agriculture adjuncts of
the Reich's economic structure was
reported by informed persons today
as the meeting of the Balkan en-
tente opened here.
Rumania, the informants said,
already has made some concessions
to Germany regarding the plan,
but is looking to her partners in
the entente-Turkey, Greece, Yugo-
slavia-to support her in a policy
of economic neutrality which would
enable her to resist encroachments
which might involve her in war.
Under this policy, proposed after
it was decided it was futile for Ru-
mania to ask the other members Of
the entente for a military alliance,
the four nations would sell supplies
both to Germany and the allies but
only to the extent of normal, peace
time trade.
Would Synchronize Industry.
Under Germany's program, it was
said, Rumanian industry would be
synchronized with that of the Reich
and become virtually part of Field
Marshal Hermann Wilhelm Goer-
ing's four-year plan for self-suff1-
cheney.
Germany would liquidate large
debt to Rumania by wholesale ship
ments of munitions and other
manufactures. Rumanian industry
would discontinue manufactures
duplicating Germany's and con-
centrate on products Germany could
use. Rumania would keep a steady
stream of oil, wheat and timber
moving to the Reich-as much as
could be transported. German
technicians would be sent to Ru-
mania to improve production and
accelerate shipments.
Briefly, the reported plan vir-
tually would freeze out Britain and
France from Rumania and involve q
written or implied German guaran-
tee of Rumanias s frontiers.
Rumania's main fear of this pro-
gram was said to be that by be-
coming Germany's economic ally
she would be inviting attack by
Britain and France and possibly be-
come the wars main BATTLEFIELD.
Fears German Thrust.
Conversely, Rumania was said
equally to fear a German thrust
should she balk at Germanys de-
termination to get needed supplies
and to have scant confidence in
British French guarantees Of help
because Of her distance from them
and Poland's fate. Thus she wants
to follow a middle course with her
entente partners.
The main argument of Rumanian
Foreign Minister Grigore Gafencu
is that the situation of the other en-
tente nations is analogous to Ruma-
MAS and greater safety for all lies
in close collaboration and economic
as well as political neutrality.
While Yugoslavia apparently is
disposed to 60 along with such a
policy, Greece and Turkey are
farther from Germany and, more
closely tied with the allies, would
face difficulties in upsetting trade
gains they have made with the allies
since the outbreak of war.
On the other hand, Turkey is re-
garded as the only entente member
that might be willing to go to war
for Rumania if she were attacked
by Germany or Russia.
Garencu arrived here this morn
ing and joined Saracoglu, Gen. John
Metaxas, Premier of Greece, and
Foreign Minister Alksander Cincar-
Markovich for a brief conference
before lunching with Regent Prince
Paul.
The plan for economic neutrality"
under which Rumania, Greece, Tur-
-lT1-ry--