NEED OF CAPITAL 9 



our interest to take up this matter, and to come to 

 an understanding with our Allies on the subject, and, 

 if possible, with neutral countries such as Norway 

 and Sweden, as soon as possible. 



In this connection one of the first problems requiring 

 solution is, as has been indicated, to ascertain the 

 amount of timber which it will be possible for Russia, 

 Norway, and Sweden to export for the next few years. 

 It should not prove a difficult business to obtain fairly 

 close enough estimates of these amounts. Russia, 

 as is well known, has vast forest resources, and, as 

 will be shown, she has been one of our chief suppliers 

 for some years past. But to tap these supplies capital 

 will be necessary, and organisation. With the inflated 

 values of timber it may be thought that capital should 

 be easily forthcoming. But the war will not leave 

 Russia with any capital to devote to the purpose, a busi- 

 ness in which she will not have as vital an interest as 

 we ourselves. We shall be the hardest hit by a failure 

 in our timber supplies, as we are in fact at the present 

 moment. As regards neutral suppliers, Norway and 

 Sweden might be inclined to hold up their supplies and 

 be unwilling to cut up to their annual increment, or 

 even over it, to take advantage of an enhanced market, 

 in the hope that prices might go higher. Any action 

 tending to the holding up of supplies at the end of the 

 war would have serious and disastrous effects, and the 

 risk should be removed by previous agreement between 

 the parties concerned. Whatever steps it may be 

 decided to take, it would appear advisable for the 

 Entente Powers to discuss and settle the problem. For 

 none will have money to fritter ^away in operations 



