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

Estonia, Latvia and Lithuania are situated on the eastern shore of the Baltic Sea between the Finnish Gulf in the north and the Bay of Memel in the south. Their total area is 64,000 square miles, being thus equivalent in size to England, Wales and Northern Ireland combined. The population of the three countries amounts to six millions.

The peoples of the Baltic States are ethnologically distinct from the Slavonic and Germanic races, the Estonians belonging to the Finno-Ugric, the Latvians and Lithuanians to the Baltic branch of the Indo-European groups of nations. During centuries of foreign domination the peoples of the Baltic States retained their own national character and culture and at the same time preserved their own languages which differ entirely from both Russian and German.

From the time of settlement within their present boundaries some two thousand years ago, the Estonians, Latvians and Lithuanians enjoyed complete independence, in the case of Estonia and Latvia until the beginning of the 13th century, and in that of Lithuania until the 15th century. During the 13th, 14th and 15th centuries Lithuania was one of the largest and most powerful kingdoms in Europe, with frontiers stretching from the Baltic to the Black Sea. In the course of their chequered history the Baltic States have been wholly or in part conquered successively by the Teutonic Knights, the Poles, Swedes and Russians.

The Baltic States regained their independence in 1918, after a successful war of liberation, lasting from 1918 till 1920, against the Germans and Russians, and thus for the time being put an end to foreign domination in the Baltic.

The independent Baltic States established for themselves a democratic form of government and began to reconstruct their political life in accordance with their own needs. During the short interval between the two World Wars these countries were able to consolidate their political, economic and cultural life, and in all these fields won recognition from other advanced nations. In June, 1940, the Baltic States were invaded by Soviet Russia, and have been since the summer of 1941, under German occupation.

In their external policy the Baltic States fostered among themselves close and friendly collaboration. In the economic sphere somewhat looser ties united them, in view of the fact that their products were largely identical. At one time the question of a customs union between Estonia and Latvia was seriously considered and in principle virtually adopted, with the prospect of possible extension to Lithuania. Owing, however, to the subsequent spread of economic nationalism arising from the world crisis, this plan of wider co-operation was left temporarily in abeyance. 7

The Baltic States are predominantly agricultural countries, and a majority of their population gain their livelihood from farming. There are in the Baltic States 660,000 privately-owned farms with an average holding of 15 hectares or 36 acres of land per farm. Mixed farming is the prevalent system adopted in the agriculture of the Baltic States. Cattle-breeding, dairy-farming, and pig-rearing are the chief features of their agriculture. The co-operative movement in agriculture was highly developed. Industry in these countries plays a comparatively minor part, although its development has been accelerated since the world economic crisis, more particularly in branches where the existence of natural resources has made this possible. The most important of such branches is the timber industry.

The distribution of the active population by occupations in the three Baltic States was as follows in the years specified :

Distribution of Population of the Baltic States by Occupations

The distribution of occupations, as given above, clearly shows that when the problems of post-war reconstruction are considered, the restoration of agriculture will be the main task confronting the Baltic States.