French Trade in the Balkans The terms of the trade
agreements with Rumania and Yugoslavia recently signed by France are now published. The treaty with Yugoslavia is designed to encourage French exports, to facilitate the transfer of French credit balances in Yugoslavia, and increase French capital investment in Yugoslavia ; special arrangements are to be made to over- come the difficulties which prevent Yugoslavia from taking advantage of the import quotas available to her in France. Under the agreement with Rumania, France will buy i io,000 tons of Rumanian maize and take at least 25 per cent. of Rumania's output of oil; the proceeds will be devoted to paying for French armaments delivered to Rumania in 1936 and 1937 and to the service of the French section of the Rumanian debt. Such details emphasise that, despite Ger- man penetration of the Balkans, there are no obstacles to an increase of trade between the Balkan countries and the democracies ; and, indeed, the full use of the commercial and financial advantages the democracies can offer can out- weigh the political pressure brought to bear by Germany. The negotiation of such agreements is an indispensable part of any system of mutual assistance between the Balkan countries and the Western Powers.
