The Baltic States as a British Market in the Past and Future

The object of this report is to show the importance of the Baltic States — Estonia, Latvia and Lithuania — as customers for British products in the past, and particularly after this war. It is not generally realized that before the second World War, these three countries, with a population of hardly six millions, imported British manufactured goods to exactly the same value as their Eastern neighbour — Soviet Russia — with a population of 170 millions. At the same time the value of British goods imported by the Baltic States, calculated per capita, was five times as great as the value of British goods imported by the Central and SouthEastern States of Europe, calculated on the same basis.

Being rapidly developing agricultural countries, with a steadily-rising standard of living, the Baltic States gradually became good potential markets for the industrial countries of the West. In this connexion an attempt will here be made to describe the economic background of these countries in relation to their external trade, with special reference to the United Kingdom, and to estimate as far as possible the actual demand for goods and machinery during the period of reconstruction in the immediate post-war years.

The second World War will undoubtedly leave most of the European countries poverty-stricken and hungry, and the first and foremost need will be relief. It is, however, likely that, in view of the healthy and well-organized nature of their agriculture, based on small holdings and private ownership, the Baltic States will emerge from this war with only comparatively modest requirements for relief and that, in some degree, they may even be able to contribute to the relief of other countries.6