ABSTRACT
The argument that the economic fortunes of Britain, if not the world, were closely linked to those of Germany was one favoured by many who had studied the development of the international economy. On these grounds the City and the Treasury steadfastly opposed the principle of a clearing arrangement with Germany, for channelling trade and payments in this way posed a serious threat to the interests of British finance. As Germany rearmed the shortage of raw materials became so critical that, in 1936, Hitler established the Four Year Plan; its purpose was to increase domestic production, if necessary by synthetic means, in order to make Germany as self-sufficient as possible. Unilever provided an illustration of Germany's policy of attempting to obtain extended credit terms. The company received a proposal from an important German textile concern which sought a large loan in Credit Sperr marks.
