Rumanian-German Trade
The Rumanian-German trade convention which was signed at Bucharest last week appears to have given the Ger- mans a good deal less than they had hoped for, particularly in respect of oil. Not only is the total amount of oil avail- able for export from Rumania reduced by her own increased consumption, but the percentage of this to be sent to Ger- many in 1940 will be not more than a third—a minimum of 45 per cent, had been expected. In return for this Germany will send arms manufactured in Essen and will continue the supply of munitions from the Skoda works. The rate of exchange in this barter agreement was one of the difficulties in the negotiations—the fixing of the currency exchange rate being equivalent to fixing the ratio of value of German manu- factures to Rumanian materials. When the exchange rate is fixed at 49.50 lei to the mark instead of 75, as demanded, it simply means that more German armaments must be given for the same amount of oil. Rumania cannot do without German trade. But she is not exclusively dependent on it.
_ She has bargaining power, and is doubtless in a better position for making terms than she was a year ago.
Previous page
