ECONOMIC UNION

Dominion, Volume 33, Issue 226, 19 June 1940, Page 10

ECONOMIC UNION

Plan For All American Nations SOLID FRONT AGAINST TOTALITARIANS Disposal Of Export Surpluses (By Telegraph—Press Assn. —Copyright.) WASHINGTON, June 17. The first reaction to the news that France is suing for peace is that President Roosevelt has initiated a move to unite the 22 American countries, including Canada, in a tight economic union, so as to present a solid front against economic upheavals throughout the world and compel the totalitarian Powers to trade on American terms. Details have not been disclosed. The "White House revealed that the Secretary cf State, Mr. Cordell Hull, the Secretary of Agriculture, Mr. 11. A. "Wallace, the Secretary of the Treasury, Mr. H. Morgentliau, and the Secretary of Commerce, Mr. H. L. Hopkins, are working at full speed on a plan which is described as the most effective manner of disposing profitably of the Western Hemisphere’s export surpluses. There are indications that the United States is contemplating the foundation of a cartel in the Western Hemisphere to handle the export problems of all the American nations in view of the growing influence of Germany’s barter system. At least one official quarter considers that the plan is an effort to forstall further economic Penetration of the La tin-American countries by the totalitarian Bowers and will be complementary to the pending declaration by the Legislature that the United Slates will not asquiesce in the transfer of the sovereignty of territory in the Western Hemisphere. it is believed that the plan aims to compel Italy, Germany, and other totalitarian Powers to trade along conventional lines with the Western Hemisphere instead of through barter , agreements. i An official of the Commerce Depart- . meat said that one of the plans which ( Were under consideration provided for j a corporation subsidized by the i United States to spend approximately 1,600,000,000 dollars a year in buying all the exportable surpluses of Central and South America for re-sale at whatever prices could be obtained. it is expected that the plan will result in losses of approximately 500,000,000 dollars a year, which the United j States will bear, but it would save more by reducing its expenditures on armaments. If the Latin-American countries were able to sell to the American corporation they would be freed from dependence upon any country outside t the "Western Hemisphere and could s avoid being forced into barter deals. c

AMERICAN DEFENCE PROGRAMME Greater Effort Now Needed WASHINGTON, June 17. Administration leaders gave up hope of adjourning Congress this week. It lias been announced that the French capitulation necessitates a greater effort to complete the defence programme. President Roosevelt signed the Bill authorizing an 11 per cent, increase in the navy. The House unanimously passed and sent to the Senate a Bill increasing the authorized strength of the army to 400,000 men. Mr. C. Vinson has introduced in the House a new Bill providing for a 23 per cent, increase in the navy by the addition of 84 warships at an ultimate cost of 1.200,000,000 dollars. Mr. Vinson said it would make a total of 244 ships being built for the navy. The Bill authorizes an additional 300.600 tons of fighting craft,\ineluding three aircraft-carriers, 12 cruisers, 41 destroyers, and 28 submarines. It seeks an immediate deficiency appropriation of 50,000.000 dollars. .Mr. Vinson said that the navy estimates that an expenditure of 50.000,000 dollars in the industrial yards would permit an immediate start to be made. CLOSE U.S. WATCH French Possessions In Western Hemisphere WASHINGTON, June 17. The Secretary of State, Mr. Cordell Hull, said that the United States was closely watching developments in Europe which might affect French possessions in tile Western Hemisphere. Senator T. Connally told the Senate that the United States should send warships immediately to protect British and French possessions in the "Western Hemisphere. “Any delay may involve us in difficulties,” lie said. “If we are afraid to maintain the Monroe Doctrine we may as well delay our preparations for preparedness.” Tlie French Ambassador, Comte de Saint-Quentin, conferred with Mr. Hull, presumably in connexion with the French war orders. President Roosevelt has frozen French credits in the United States. The total is estimated at 1,000,000,600 dollars. The order is so broad that it includes bank deposits, gold securities, industrial and real estate investments, and even the liner Normandie, which is berthed at New York. U.S. MOVE DENIED European Possessions In Far East WASHINGTON, June 17. 'file Secretary of State, Mr. Cordell Hull, said that there was no truth to Japanese Press reports that the United Slates bad participated in negotiations for the stability of European possessions in (lie Far East, or other countries there, such as Siam. JAPANESE EMBASSY Women Members To Leave England (Received June 17, 8.30 p.m.) LONDON, June 17. Women members on the staff of the Japanese Embassy are proceeding home at the end of the month.