U.S. PLAN FOR TIGHT ECONOMIC FRONT.

Auckland Star, Volume LXXI, Issue 143, 18 June 1940, Page 6

U.S. PLAN FOR TIGHT ECONOMIC FRONT.

AMERICAN STATES. Resist German Methods Of Barter Trade. HUGE CORPORATION PROPOSED United Press Association.—Copyright. (Received 11 a.m.) WASHINGTON", June IT.

President Roosevelt has moved to unite the 21 \merican Republics and Canada, in a tight economic union to present a solid front against economic upheavals throughout the world. Details are not disclosed. i White House officials revealed that Mr. Cordell Hull, Secretary of State, I Mr. Henry A. Wallace, Secretary of Agriculture, Mr. Henry Morgenthau, Secretary of the Treasury, and Mr. :Harry L. Hopkins, Secretary of Commerce, are working at full speed on the plan, which is described as the most effective manner of disposing profitably of western hemisphere export surpluses. This is the first reaction to the news that France is suing for peace. The move is interpreted as indicating that the United States is contemplating the foundation of a western hemisphere cartel to handle export problems of all the American nations in view of the growing influence of Germany's barter system. Forestall Dictators' Moves. At least one official quarter considers the plan 'an effort to forestall further totalitarian economic penetration in Latin America and complementary to the pending legislative declaration of the United States not to acquiesce in a transfer of the sovereignty of the western hemisphere territory. It is believed to be aimed at compelling Italy, Germany and other totalitarian countries to trade conventionally in the western hemisphere, instead of through barter contracts. A Commerce Department official-said one of the plans under consideration provided that the United States subsidise a corporation to spend approximately 1,000,000,000 dollars annually in buying all exportable surpluses iu Central and South America for resale at whatever prices' were obtainable. Tbe economic plan contemplates losses of approximately 500.000.000 dollars annually, which the United States would bear, but it would save more by reducing expenditures on armaments. If the Latin American States were enabled to sell to an American corporation they would be free from dependence on any country outside the western hemisphere and would avoid forced barter deals.