BIG BUSINESS

Evening Post, Volume CXXIV, Issue 63, 11 September 1937, Page 8

BIG BUSINESS

ARMAMENT INDUSTRY

HOW EUROPE FILLS ORDERS

Despite the barbed-wire frontiers and border fortifications, regardless of differences of political philosophies and antagonistic national aspirations, the products of international armaments salesmen are still being offered throughout Europe to any country that will pay in cash or kind, writes Hanson Baldwin from London to the "New York Times."

International sales of munitions have taken a big jump with the current rearmament programmes and since the Spanish civil war. Products of all sorts, from areoplane engines to rifles, are being exported throughout Europe and the world. That: differing political philosophies—even if, as opposed as Fascism and Communism—make no difference in such sales is shown by the latest example, recently reported from Italy.

According to reliable information, the Italians are building at Livorno for Russia a man-of-war of about 3000 tons displacement—a light cruiser or super-destroyer—which is expected to be armed with about 5-inch guns. The Italians have also made, other armaments sales, notably aeroplanes and tanks to Austria and probably also to Hungary, which they helped to dismember after the World War.

Russia, because she cannot supply her own military wants, much less do exporting, is one of the best customers in Europe. American aeroplane salesmen have been particularly active there, displacing Germans, who formerly helped to build up the Russian air force, which, according to Chancellor Adolf Hitler, now casts the shadow of its fearsome wings over the Reich.

A copy of the German Heinkel plane is still in use in the Russian air force, but duplicates of the American Boeing are the latest planes and the American Vultee is the latest military model to be manufactured in Russia. Wright Cyclone engines are also being built in Russia under licence. The American Christie tank is similarly being manufactured in Russia, wi^h only slight modifications. Britain has also sold various tank types to Russia, and French Gnome-Rhone and French and Spanish Hispano-Suiza plane engines .are being manufactured there. Czechoslovakia's Skoda and other munition plants are doing a roaring business in Central Europe and elsewhere. The Skoda and German Krupp works reputedly share a contract for refortiflcation of the Dardanelles. The Brunn (Czechoslovakia) machine-gun factory is filling a contract for about 4000 guns for Iran. . Skoda is making 120-millimetre naval guns for Rumania, 240-millimetre howitzers for an unnamed Power, artillery varying from anti-tank 37-mil-limetre guns to 105-millimetre field guns for the Little Entente and others, and propeller shafts for Russia. Skoda is turning out ammunition for many Powers. Czechoslovakia has also sold manufacturing and licensing rights to the Bren machine-gun to Great Britain. ' REICH A LEADING EXPORTER. Germany is another big armaments exporting country; indeed, she is probably doing more business than any other country. She recently sold, according to apparently reliable reports, some of her newest Dornier medium bombers to Yugoslavia and others to Rumania. '

The Rhine. Metall Borsig, which makes guns of less than six inches, has been very active throughout Europe and South America, and its salesmen are also going to the United States. In turn, the American Pratt and Whitney engine is being manufactured under licence in the Reich. German anti-aircraft and anti-tank guns, ammunition and bombs have been sold throughout. the Balkans and Central Europe, although the latest customer, Hungary, is forbidden by the.peace treaties to re-arm.

Germany has also sold one or two minor samples to the United States in addition to relatively large sales in Bolivia and probably Brazil and Chile. Britain is negotiating the sale of Bristol Blenheims to Czechoslovakia and has sold other planes to Yugoslavia. British Rolls-Royce engines power some of the older German planes. France has exported her plane engines wherever there was a customer. She sold to Russia and Central Europe particularly, in addition'to sales of other French equipment in Poland.

Poland, in turn, sold her PZL planes to Greece, Rumania, Turkey, Bulgaria, and others. Spain has received munitions of some kind, mostly in small quantities, however, from probably every nation in Europe, if not the world.