Evening star., 1941-08-03
Norway HardestHi
Under Nazi Regime
By Loss Of Imports
Nation Faces Serious
Food Shortage, U. S.
Report Indicates

Cut off from the world contacts
on which two of its major indus
tries-shipping and fishing-largely
depended for their former prosperity,
and with its economy subject to rigid
Nazi control, Norway, under German
occupation, is feeling the pinch, ac-
cording to Commerce Department
report published yesterday.
Prepared by Grant Olson, of the
departments European unit, the
survey reviews the revolutionary
changes that have taken place in the
economic structure of Norway since
its invasion by the Nazis In April,
1910.
In the past, Norway depended on
the returns from its large merchant
feet, the operations of its whalers,
and the income from the products
of sea and shore fisheries to Offset
the meager output of its industries
and farms. The sharp decline in
the earnings of these activities has
greatly complicated the problem Of
economic reorganization under Ger
man occupation, the Commerce De-
partment report points out.
Through regimentation of labor
and industry, and control of prices,
wages and production, the Nazis have
been trying to bring Norway into
framework of Europe's new totah-
tartan economy. New industrial
development and expansion, in gen.
eral, is only permitted If useful to
Germany. AS in other conquered
territories, the Nazis have taken out
of Norway supplies and materials
which Germany lacks, or needs.
Grain, Foodstuffs Needed.
Norway's foreign trade today is
completely dominated by Germany.
The international exchange of goods,
which formerly was largely on
free exchange basis, is now con-
Quoted entirely under the German
clearing system. Germany is taking
increased quantities Of fish products,
wood pulp, paper. lumber and min
eral products. In return the Reich
ships to Norway coal, artificial tex
tile materials, machinery, chemical
and other products.
THE loss of overseas export mar
kets does not present nearly so
serious an immediate problem as the
loss of overseas sources of supply"
the report said. Germany and other
European countries within the con-
tinental blockade can increase their
purchases of Norwegian exports, but
are unable to satisfy Norways re-
ouirements in grain and foodstuffs,
which have amounted to between
two-thirds and three -fourths of the
annual consumption"
Through the National Bank of
Norway, costs of the German forces
of occupation are being paid by the
Norwegians. According to estimates
of continental sources, these ex-
penses, up to March l, 1941, have
amounted to 100000 900 crowns, or
approximately s320,G00,000.
Material Damages Small.
Norway's pre-war aluminium in
dustry, which had an annual pro-
ductive capacity of about 10000
tons, was largely financed by Brit
tsh and American interests. Or
ganization of new company, to
develop the production of aluminium
and alloys in Norway, was recently
announced in Berlin. 1t will have
a capital of 100000 marks. The
Nazis are also developing Norway's
water-poWer and mineral resources
as part of their plans to use Nor
way as source of supply for Ger
many.
Material damages caused by the
occupation are reported to have
been comparatively small. Losses
to public property, including trans
portation and communication IA
cilities, are estimated at approx
mately 100000 crowns.
Since their conquest of Norway,
the Nazis have constructed many
new roads and airfields, barracks
and other military buildings. These
projects have provided employment
4ol hldllS Afoi WCSidllo dllu lldFc
been an important factor in re-
ducing the volume of unemploy-
ment. German sources stress the
fact that the army is today the
largest employer in Norway.
According to the Commerce De-
partment report, Norway faces a
serious food shortage Bread rations
have been steadily curtailed. Pro
viding adequate food supplies for
the population is a pressing prob
lem, made more difficult by the
presence of several hundred thou
sand Germans" 1t said. Reserves
at the time of the invasion were
not large, as many of the cargoes
had not yet reached Norwegian
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