WAR PURCHASES FROM U.S.

Press, Volume LXXVI, Issue 22941, 10 February 1940, Page 13

WAR PURCHASES FROM U.S.

Measures to Avert Later Collapse

CONFERENCE AT WHITE HOUSE

CrnriTiio. press associatiob— copyright.} (Received February 10, 12.30 a.m.) WASHINGTON, February 8. The Administration’s policy to meet the long-range effects of continued big war purchases from the United States is lik.'ly to be formulated at a conference held by Mr Roosevelt, with the Secretary of State (Mr Cordell Hull), the Secretary for War (Mr H. H. Woodring), tire Secretary for the Navy (IVIr Charles Edison), and departmental heads at the White House to-day. { It is feared that foreign purchases may rapidly increase the prices of materials needed at home, and also that the financing of expanded aeroplane factories with foreign capital may be carried too far and result in a post-war collapse of industry. Mr Roosevelt is reported to be anxious to formulate a policy for keeping war demands within reasonable bounds. The Secretary of the Treasury (Mr Henry Morgenthau, jun.) declared that he favoured letting industry formulate its own policies. Atlas Powder Company officials disclose that Britain has advanced money for the construction of an explosives plant, the, total output of which is to be consigned to England and France. It is understood that payment will be gauged according to tonnage. It is officially stated that the production capacity of the United States aero engine plants is 1000 a month, and this will reach 1500 by midJuly and 2000 by the end of the year. It is estimated that a year’s production will be about 13,000 motors of an average of 1000 horse-power, of which the United States and Navy will require 7500 to 8000. The Allies have contracted for virtually all the remainder.

SUGGESTED BAN ON SUBMARINES PROCEDURE FOR AMERICAN REPUBLICS RIO DE JANEIRO, February 8. The Inter-American Neutrality | Committee has recommended that the American Republics should ban belligerent submarines in territorial waters except if they need refuge because of weather, or if they urgently need repairs, or for humdnitarian reasons. It adds that if submarines are permitted entry, they must navigate on