U.S. TO REARM

Press, Volume LXXIV, Issue 22534, 17 October 1938, Page 9

U.S. TO REARM

HUGE EXPENDITURE INDICATED

GERMAN INFLUENCE IN THE WEST

(Received October 16, 9.12 p.m.)

NEW YORK, October 16,

Mr Bernard Baruch, the banker, is credited with largely reflecting Mr Roosevelt’s views on defence. To-day he advocated a special tax to meet increased rearmament, and also the diverting of a portion of relief funds, thus giving relief workers employment. “The cost of rearming will undoubtedly be billions, but we must pay if we are going to give America a voice of authority in world affairs,” he said. “Aggressive nations heed only force and might. We should build to such an extent that they know we are prepared to defend our ideals against all odds.

“The United States must also curb German economic and political influence in the western hemisphere, where the great future development of the world will take place. If necessary we should subsidise trade with the South American republics in order to meet the unfair methods of the aggressor nations.” It is rumoured that Mr Baruch may control rearmament. Week-end leading articles all support Mr Roosevelt’s defence policy. A New York message says that, though refraining from approval or condemnation, the press generally interprets a statement by Mr Roo evelt as a hint that the United States in 1939 will embark on a huge rearmament programme involving even greater expenditures than have been forecast up to now. The Administration indicated that it was considering larger appropriations for the army and navy, new manufacturing techniques (particularly in the mass production of aeroplanes), and also methods of stimulating 1,000,000,000 dollars construction work by mobilising private utilities.

Mr Roosevelt made it _ clear that, besides the European crisis, a new survey of defence forces _ had _ been hastened by recent technical information causing concern over the state of the national defences.

The Washington correspondent of the New York “Herald-Tribune” states that one factor is _ reports from Colonel Charles A. Lindbergh on the air equipment and productive capacity of European Powers, particularly Germany. Another report states that the Administration was informed that German production amounted to 12,000 aeroplanes a year. Interviewed at White House, where he is the guest of Mr Roosevelt, Mr Baruch emphasised America’s unpreparedness. He urged a larger navy, an army of 400,000, the organisation of industry to enable the rapid production of munitions, “so we won’t find ourselves in England’s humiliating position.”

“The so-called Munich peace is due to one thing alone, AngloFrench unpreparedness,” he declared. “Herr Hitler knew that they were unprepared to come to grips. I knew that America was unprepared. We have a good navy, but the army is not a first-class one.”

NAZI CAMPAIGN IN MEXICO

EFFORT TO INCREASE TRADE

SPREADING GERMAN IDEAS

(Received October 16, 9.20-p.m.)

MEXICO CITY, October 16

Germany has begun an extensive advertising campaign in the Mexican press, designed to increase Nasi trade, which has risen by 12i per cent, in 1938, and to “sell”. Nazi principles and the Nazi version of history. The newspapers are carrying two pages of _ ft is understood that this is the start of a campaign throughout Latin America. . . , ' A typical historical article states that Napoleon was defeated in 1815 by the German, Austrian and Russian armies, and does not mention Britain’s slight assistance at Waterloo.