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TFD/PC/188 Part II

5* It had been possible to avoid a rise in prices by

increasing production and imports* What measures were >    talcen to increase imports ?

Liberalisation vis-a-vis O.E.E.C* countries amounted to 91,-. and vls-a-vis the dollar area 65^# but a large proportion of imports were subject to a system of free licences, which raised effectivc liberalisation vis-a-vis the latter area to    Very i

few .commodities were still cubject to licence, with the exception of agricultural products, for which Germany was encountering the same difficulties as other countries* The increase in imports from the dollar' area amounted to 68/.* in the first ąuarter of 1935 as comnared with the first auarter of 195^j+J this was bound to be a favourable developnent* It was essential to buy at the cheapest price in order to obtain higher productivity and prepare the German cconcny for th -eturn to convert:Lbility.

6• Vlhat was the level of wages as compared with other countries ?

The level of wag es ensured a highly satisfactory standard of living, but it was not possible to compare it with other countries where the policy of fuli employment has been achieved, as, for instance, in certain Member countries which have encoun-tered difficulties which the German Authorifcies are endeayouring to avoid*

7• The German Goyernment subsidiscd shipbuilding by granting firms credit at onTy interes t and gjyjiig Fhern a guorantce of Dli* 100 million* This was an adyantage over foreign competition* The ffiyj clause applied'b.y the United States, and the protectlon giyen by Germany and ffrance to their shippinr companies was restricting; the marł me transport earninpcs of other countries such as Norway *

This probably refers to credit granted with counterpart funds to certain key industrieę such as coalmining, electricity and to a lesser extent shipbuilding. It should be remembered that while the tonnage of the Norwegi an fleet is higher than before the war, German tonnage is oonsiderably lower than it was then# Production in the shipbuilding scofcor, where the index stood at 132 in 195^ (1936=100), had inereased morę slowly than in the iron and steel, machinę tools and motor industries, where the 195^ index, on the same basis, stoocl at IGO, 1^0 and 200 respec-tiyely.