English Translation

49 - 21 - Complaints, the extent of which is difficult to estimate, Free foreign exchange provides an important movement in import during wartime, especially more favourable import prices than they are possible in clearing. Most of these advantages are eliminated.- The companies Bata, Witkowitz, Poldihütte, Skodawerke and Brünner Waffenwerke were previously obliged to cover their raw material requirements by own export. The resulting incentive to export is weakened if in future mainly clearing proceeds are generated, with which the still existing import possibilities cannot be exploited. The question as to whether the amendment of these trade agreements, which partly run with notice periods, partly - as with Romania - are limited until 30.IX.l940, should be negotiated with the countries concerned before the abolition of customs duties, has been discussed in detail in the Reichswirtschaftsministerium. The outcome of the discussions was to allow these treaties to proceed calmly at first, i.e. to present the contracting states with completed facts, and to wait until the contracting States approach the empire after the abolition of customs duties. It might be possible to achieve to some extent that the Treaties will remain in place after the abolition of customs duties and that the Protectorate will be able to export insofar as it has been able to do so against free foreign exchange.