Nazi Gains and Liabilities

Denmark. The day Hitler's troops move into the Danish larder, rolling comfortably over the undefended frontier, disembarking at ease on the quays of a capital that has just surrendered to the mere threat of annihilation from the air, a hearty welcome will be extended to them.

In an extraordinarily prescient book called Rats in the Larder, written in 1938 --mostly before the Munich Agreement had made every European journalist a Cassandra--TIME'S Copenhagen Correspondent Joachim Joesten gave two reasons why Germany was certain to overrun Denmark early in the next war. Last week, which found Correspondent Joesten a fugitive in Sweden, his prediction and his reasons were upheld almost word for dire word. One of the reasons was strategic (see p. 19). The other was economic: Denmark is the larder of hungry Europe.

In Denmark, Herr Hitler got something good. Denmark produces one-half of the entire world supply of bacon, one-quarter of the butter, one-quarter of the eggs. Its economy is 35% agricultural and, like neither Norway nor Sweden, it is almost self-sufficient. Denmark grows most of the fodder needed to feed its 564,000 horses, 2,845,000 pigs, 3,183,000 cattle, 27,600,000 cocks and hens. By "protecting" Denmark, Germany assured itself of a margin of food for want of which the German population might have revolted. The Danes themselves were rationed to a maximum four days' food supply.

Until last week, "Europe's breakfast table" sold her succulent abundance to two big customers: Britain took nearly 60%, Germany about 20%. Britain paid in sterling, Germany in credits, promises, and in blackmail (for instance, Germany forced Denmark to accept credits in coal, then, because Denmark was already oversupplied with British coal, charged storage on the undelivered coal). That Germany expected to get the Danish larder for nothing was indicated by what Danes were forced to accept for their goods--script money called Reichskreditkassen-scheine, carried by the invading troops.

But if Adolf Hitler expected to get gold or hard foreign securities from Danish vaults, he was disappointed. It was announced in London that $120,000,000 of Danish and Norwegian bullion had been secretly and successfully flown to the Bank of England before the invasion.

Norway was a fish of a different scale. If Herr Hitler accomplishes his conquest of Norway, he will have an immediate economic liability on his hands. Like Denmark, Norway is an economic specialist. Her specialty is export of natural resources. She exports timber, pulp, cellulose; iron ore, pyrites, copper, nickel, molybdenum; fish, whale oil--products which Germany can use.

But whereas Adolf Hitler can take Denmark's larder without putting anything in, he must sacrifice plenty to get his Norwegian loot. In order to keep the labor of digging, cutting and fishing under way, he must send into Norway just the things Germany can spare least--food, clothing, oil, coal and coke. Obviously he considered this temporary liability worth hazarding for the strategic asset involved: control of Swedish ore.

Shipping stood high among the economic assets of both Denmark and Norway. In gross tonnage of mercantile marine, Norway stood No. 2 in all Europe, Denmark No. 9. What would become of the 2,600 merchant vessels (some 5,850,000 tons, deducting war losses) of the two nations was at week's end an open question. By far the greater part was at sea.

As soon as German troops had control of Copenhagen and Oslo, German-inspired Danish and Norwegian broadcasts ordered ship captains to proceed to neutral ports, preferably in Italy and Spain. The British countered with an official broadcast urging the captains to disregard the German broadcast, proceed at once to Allied ports.

The British broadcaster spoke as one tar to another: "Your country is now in the hands of a power which has disregarded the sea tradition built up during the centuries of sailormen of true seafaring stock." At week's end the British and French Navies began seizing Danish merchant vessels as prizes of war.

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