Evening star., 1941-02-02
Nazi Trade Controls
To Exploit Europe
Barred in u. 5. Report
Denmark Used to Show
How Economic Ruid
Technique Works
By OLIVER MCKEE,

Germany was exploiting the great
er part of Europe through trade ano
economic controls at the end OF
1910, the Commerce Department
said in a report yesterday.
Prepared by Henry Chalmers. CHIEF
of the division of foreign tariffs
the report deals primarily with
European trade control measures
after the fall of France, pointed out
that practically all countries OF
Europe not already living under q
controlled economy appear to have
adopted for the time, a pattern OF
trade control closely resembling that
of controlled economy"
To illustrate the Nazi exploitation
technique in occupied areas, Mr.
Chalmers cited the measures USED
in Denmark. At the time of the
occupation in April, Denmark owed
Germany a small amount on the
clearing account between the two
countries. At the end of four months
the Reich succeeded in converting
this small German credit into huge
debt of 800 million crowns, owed to
Denmark, the greater part of which
was represented by heavily = in
creased shipments of goods from
Denmark to Germany. The amount
which Germany borrowed from
Denmark, during the eight months
of occupation was approximately
equal to the total value OF all Danish
exports of merchandise in 1888.
Procedure Explained.
Such scope for autonomous trade
control and independent action IN
negotiations as appears to have been
retained by the occupied areas has
been distinctly limited by the prior
and overriding action of Germany
in taking over domestic products or
imported stocks accumulated in the
occupied areas, presumably to be
covered by German goods in such
quantity and variety as that coun-
try could spare. beyond the amount
charged to the costs of the German
forces of occupation Mr.. Chalmers
said.
mo published records of move
ments of goods between Germany
and the occupied areas are avail
able. However, the reports of sharp
increases in the living costs in the
occupied areas. and of rationing to
the civil populations of long lists of
products and materials, including
commodities of which the countries
normally have surplus above do
mestic requirements, seem signifi-
cant.
Currency Exchange Altered.
can important element In trade
arrangements between Germany and
the occupied areas has been the
change in the terms of trade, to the
disadvantage of those areas, re-
sulting from the new exchange ra-
tios established between the re-
spective national currencies. For
the declared purpose of readjusting
the relative price levels. the ex-
change ratio of their currencies in
terms of reichsmarks was regularly
lowered. and in several more
than once. These successh~ cheap
enings of the other countries cur
rencies had the immediate effect of
increasing the purchasing power OF
German money for the products of
the occupied countries, and of max
ing German products dearer to their
populations.
For the countries of continental
Europe not directly involved In the
war, the progressive shrinking in
the areas open to overseas trade
was the outstanding economic de-
velopment of the year, the report
said. As a result of the extension
of the British blockade, the domi-
nation of most of the continent by
Germany, few European countries
had any important lines of COM
munication with overseas areas open
to them when the year closed
Neutrals Seek Alternatives.
Through trade and other agree
ments, many European neutrals
have sought to develop alternative
sources for needed products which
cannot now be obtained from over
seas. The trade arrangements with
Germany we're the outstanding ones
land most of these" Mr.. Chalmers
pointed out, were apparently DOM
mated by the German desire to
obtain increased quantities of prod
ucts or stocks from the other coun-
tries, in return for such German
goods as could be promised delivery
or by arrangements for the balanc-
ing of accounts by supplies from
third countries"
Not all neutral countries of Eu-
rope were in position which
obliged them to accept unfavorable
terms in their commercial dealings
with Germany, Mr. Chalmers said
Greece and Turkey were notable
among those countries that have
resisted Nazi economic domination