Practiced by AGK (Ausfuhrgemeinschaft für Kriegsgerät) - created on 30.10.1935 and comprising 12 manufacturing groups with 75 companies in 1936 and 88 companies in 1937
Export countries - Hungary, Bulgaria, Turkey, Spain, Portugal, China, Japan, Sweden, Peru
Competitors - Czechoslovakia, France, Poland, Great Britain
Prices - general arms - 40-50% above world average, warplanes - 30% above world average, warships - 50% above world average.
Competitive advantages - shortest production and delivery deadlines (generally 1 year as compared with 3 years for Great Britain), payments can be 15% hard currency and 85% raw materials (later after 1937 however hard currency percentage is increasing gradually), the Balkan countries have in the beginning positive clearing trade saldos to Germany as follows (1936 beginning - Bulgaria - 10 mln. RM, Greece - 30 mln. RM, Yugoslavia - 21 mln RM, Romania - 18 mln. RM)
Competitive disadvantages - high prices, credit terms offered unfavorable as compared to Czechoslovakia for example, also Czechoslovakia often omits hard currency requirements, settling for other options, unlike Germany
1936 - contracted 261,2 mln. RM (14,4 mln RM hard currency), 127 mln RM in Balkan countries and 45 mln RM in Hungary, delivered 51 mln. RM
1937 - contracted 192,8 mln RM (103,7 mln RM hard currency)
By countries:
Bulgaria - either 100% clearing or 100% grain exports. In addition 25% copper or lead exports. Credits to Bulgaria - 1936 - 30 mln. RM for 5 years, 13.03.1938 - another 30 mln. RM for 8 years (possible extension to 11 years). April 1939 - 45 mln. RM for 8 years. 13.07.1939 - new credit for 25 mln. RM for supply of captured Czech arms, 10.07.1939 - special credit for 10 mln. RM for warplane delivery. Competitors - Poland (1936 - equivalent 4 mln. RM arms exports to Bulgaria), England (tanks, negotiations for planes and ships), France (negotiations for a credit of 350 mln. francs)
Greece - 15% hard currency, 85% clearance, sometimes 100% hard currency and additional 100% raw materials (if military industrial equipment) - 60 mln RM exports, credit for 6 years (actually the credit was canceled end of 1937 with 40 mln RM used). 1939 - delivered HS-126 warplanes, command and optics equipment, MGs.
Turkey - 100% raw materials (grains, ores, etc.). 80 mln. RM in total - artillery, planes, searchlights, 4 submarines. Competitors - 50 mln. RM equivalent (Czechoslovakia - 12 000 HMG Brno, 200 Tatra tractors, heavy artillery Skoda). 1939 - deliveries - heavy artillery, warplanes, navy materials, etc. for Chromium ore, etc.
Romania - 100% oil, 20 mln. RM in Germany (reflectors, warplanes, submarines), 60 mln. RM in other countries (mainly Czechoslovakia - rifles, MG in Brno, artillery, tanks, trucks in Skoda). 08.07.1939 - credit for 60 mln. RM for oil supplies. 1939 - arms delivery - MG Zbrojovka, AA guns, fighters for oil.
Yugoslavia - no clearing, 15 % hard currency and 85% raw materials, 13 mln. RM in 1936 - 48 Dorniers and 8 motorboats. Competitors - 100 mln. RM (mainly Czechoslovakia, also France, Belgium (100 aviation MGs) and 2 cruisers, 100 Bristol Belnheims and 100 Spitfires in England). 05.10.1939 - contract for supply of 100 Me-109, 13 Me-108, Skoda AA guns and ATG for 3000 t copper, 500t lead, 1000t lead concentrate and monthly supply of 1500-2000t of copper and 500 t of lead from November 1939
China - mostly in 1936-1937 - above 33 mln. RM
Sweden - some AA guns for iron ore
Peru - 100% hard currency
Competition analysis Germany vs Czechoslovakia until 1938:
Small arms, rifles - Czech are 30-40% cheaper with similar qualities
MG - Brno, ZB better than MG-13
ATR - 15mm Czech Brno better and cheaper than 20mm German (another competitor is the Swiss 20mm Erlikon)
ATG - Czech 47mm better than German 37mm
Heavy artillery - Skoda predominates in the Balkans until 1938
Searchlights, optics and acoustics - German are considered much better than Czech
Export countries - Hungary, Bulgaria, Turkey, Spain, Portugal, China, Japan, Sweden, Peru
Competitors - Czechoslovakia, France, Poland, Great Britain
Prices - general arms - 40-50% above world average, warplanes - 30% above world average, warships - 50% above world average.
Competitive advantages - shortest production and delivery deadlines (generally 1 year as compared with 3 years for Great Britain), payments can be 15% hard currency and 85% raw materials (later after 1937 however hard currency percentage is increasing gradually), the Balkan countries have in the beginning positive clearing trade saldos to Germany as follows (1936 beginning - Bulgaria - 10 mln. RM, Greece - 30 mln. RM, Yugoslavia - 21 mln RM, Romania - 18 mln. RM)
Competitive disadvantages - high prices, credit terms offered unfavorable as compared to Czechoslovakia for example, also Czechoslovakia often omits hard currency requirements, settling for other options, unlike Germany
1936 - contracted 261,2 mln. RM (14,4 mln RM hard currency), 127 mln RM in Balkan countries and 45 mln RM in Hungary, delivered 51 mln. RM
1937 - contracted 192,8 mln RM (103,7 mln RM hard currency)
By countries:
Bulgaria - either 100% clearing or 100% grain exports. In addition 25% copper or lead exports. Credits to Bulgaria - 1936 - 30 mln. RM for 5 years, 13.03.1938 - another 30 mln. RM for 8 years (possible extension to 11 years). April 1939 - 45 mln. RM for 8 years. 13.07.1939 - new credit for 25 mln. RM for supply of captured Czech arms, 10.07.1939 - special credit for 10 mln. RM for warplane delivery. Competitors - Poland (1936 - equivalent 4 mln. RM arms exports to Bulgaria), England (tanks, negotiations for planes and ships), France (negotiations for a credit of 350 mln. francs)
Greece - 15% hard currency, 85% clearance, sometimes 100% hard currency and additional 100% raw materials (if military industrial equipment) - 60 mln RM exports, credit for 6 years (actually the credit was canceled end of 1937 with 40 mln RM used). 1939 - delivered HS-126 warplanes, command and optics equipment, MGs.
Turkey - 100% raw materials (grains, ores, etc.). 80 mln. RM in total - artillery, planes, searchlights, 4 submarines. Competitors - 50 mln. RM equivalent (Czechoslovakia - 12 000 HMG Brno, 200 Tatra tractors, heavy artillery Skoda). 1939 - deliveries - heavy artillery, warplanes, navy materials, etc. for Chromium ore, etc.
Romania - 100% oil, 20 mln. RM in Germany (reflectors, warplanes, submarines), 60 mln. RM in other countries (mainly Czechoslovakia - rifles, MG in Brno, artillery, tanks, trucks in Skoda). 08.07.1939 - credit for 60 mln. RM for oil supplies. 1939 - arms delivery - MG Zbrojovka, AA guns, fighters for oil.
Yugoslavia - no clearing, 15 % hard currency and 85% raw materials, 13 mln. RM in 1936 - 48 Dorniers and 8 motorboats. Competitors - 100 mln. RM (mainly Czechoslovakia, also France, Belgium (100 aviation MGs) and 2 cruisers, 100 Bristol Belnheims and 100 Spitfires in England). 05.10.1939 - contract for supply of 100 Me-109, 13 Me-108, Skoda AA guns and ATG for 3000 t copper, 500t lead, 1000t lead concentrate and monthly supply of 1500-2000t of copper and 500 t of lead from November 1939
China - mostly in 1936-1937 - above 33 mln. RM
Sweden - some AA guns for iron ore
Peru - 100% hard currency
Competition analysis Germany vs Czechoslovakia until 1938:
Small arms, rifles - Czech are 30-40% cheaper with similar qualities
MG - Brno, ZB better than MG-13
ATR - 15mm Czech Brno better and cheaper than 20mm German (another competitor is the Swiss 20mm Erlikon)
ATG - Czech 47mm better than German 37mm
Heavy artillery - Skoda predominates in the Balkans until 1938
Searchlights, optics and acoustics - German are considered much better than Czech