Le Nord : revue internationale des Pays de Nord - 01.06.1941, Page 107

SWEDISH TRADE POLICY IN WARTIME ioi
and clearing agreements became increasingly numerous. Before the
war only about one-fourth of Sweden’s foreign trade, in terms
of value, was regulated through clearing; the corresponding figure
is now about 70 per cent. The chances are that for some time
after the war we shall have to put up with the clearing system.
As pointed out above, clearing has its advantages, but it has
also drawbacks. The most striking drawback is perhaps that
trade is forced into a two-sided frame; a clearing agreement
constitutes a separate whole, the principle of which is that im-
ports and exports must balance each other. The possibility of
carrying on a triangular trade, for instance through using the
export surplus from our trade with our neighbour countries in
the North to pay for the excess of our imports from the U.S.A.
— a matter of great importance to Sweden — is precluded when
one is tied up in a system of bilateral clearing agreements. Ger-
man trade policy experts are now suggesting a system involving
the transfer of the balance from one clearing account to another.
Germany, who has made clearing agreements with most Euro-
pean countries, should — it is felt — in virtue of her central
position, be able to organize a multilateral clearing arrangement
of this kind. German theorists have pointed out that there existed
a sort of multilateral clearing even in the times of the classical
gold standard — before 1914 — in so far as it was customary
to effect international payments by means of Sterling cheques
drawn on London.
The German proposal for multilateral clearing is thus said
to aim at a release from the compulsion involved by a strict
system of bilateral agreements. To bring about a solution of
this nature it appears, however, that a further step should be
taken through the establishment of a free market for clearing
surpluses. For if it is necessary, in order to effect each transfer,
to begin negotiations between three governments, the multilateral
clearing will never become the subtle instrument demanded by
an effective international exchange of payments. Only an open
market, where clearing surpluses are freely exchanged, can answer
this purpose.
In Swedish trade policy we have in one instance tried to
carry into practise the principle of multilateral clearing: certain,
though not very large, sums have been transferred from the
Swedish-German to the Swedish-Danish clearing. This means
that we have balanced our exports to Denmark by means of