CONCERN IN U.S.A.

Evening Post, Volume CXXIX, Issue 19, 23 January 1940, Page 7

CONCERN IN U.S.A.

REDUCED EXPORTS

EFFECT OF BRITISH WAR ECONOMY

MUCH IRRITATION

(By Telegraph—Pres3 Association—Copyright.)

WASHINGTON, January 22

The United States is becoming increasingly corifcerned over the effect of the British war economy on the American export trade. Shipments to Europe, representing a third of the total exports, have been drastically reduced, not only because of direct belligerent actiyitiesj but also because of the British blockade of neutrals who might tranship goods to Germany. Another factor is the closing of British markets' to conserve the dollar exchange and strengthen the ecof nomic and political ties between the , Allies and countries friendly 7to the . 'Empire.' ;-; . 7V; ':.{y\\y ■ This is damagirig United States agricultural exports, particularly wheat, tobacco, cotton, and fruit. The volume of agricultural products exported in November was the smallest since the 1934 droughty > : Officials fear that the' British failure to buy United States tobacco 7 will create a domestic surplus,and; depress prices. The planters. are planning to produce 500,000,0001b hi 1940,; i compared with 1,600,00p,0001b last year. Similarly, it^is feared that the cotton growers will suffer as a 7 result of the British decision to allot shipping space for only 100.000 bales a;month during the next six months. The exporters may not be able to move all the cotton sold. ' While purchases of war material , may offset the losses to some degree, the United States is also being forced out of the Argentine, 7 the leading Latin-American ; market; v because British buying 'of Argentine wheat and meat is forcing Argentina, and, to a less extent Brazil, fo; reciprocate. ..„ The general position is creating considerable irritation: It \:': is7 stated that it has been made clear to i/the British Embassy, that public, opinion is being, adversely affected. ■ . .THE": MAIL'PROTEST.-;'" The New York "Herald-^Tribune,''7in an editorial, infers that the State D£r. parfanent's disappomtmeht at the British rej ectiort of the mail protest refers less to the protection of Emails than to the possible effect of 7 the British atfitrde on Americai;opinion. "There are sonde hints that Our protest was designed to give the British an opportunity to .make effusive applo-^ gies and unimportant concessions which could be used to mollify domestic criticism," it states. "The - flat, legalistic rejection of the protest, coupled with the tart i> justifiable query: 'Why have you not, .protested against the German method of sinking mails WitJ^Mi warning?' is, not helpful. The JState Department 'cannot publibly admitthat it Will protest only to a point where protestsV' hurt one iide, 'jut to continue 'protesting with the mental reservatidnv that it will not be pressed to the point where it embarrasses, the recipients .is! productive only of confusion, bad blood, and misconceptions." * The "Tribune" urges-;,that a protest must, be used with .caution- and the severest: realism; ; It should not begin with the defence of abstract "rights without. considering the .practical effect on the war and United States interests therein, but when^the! protest is made if, should leave no doubt that it is meant seriously. ! r '■.[', DETENTION OF SHIPS. The "New^ York Times," in an editorial, says:. "Many i annoying ingredients have gone into the diplomatic brew that boiled up at the weekend because of '.British interference with American mails and foreign trade. The British Ambassador^ Lord Lothian, has/been left in «o doubt of the displeasure of the ■, United States; Probably the most serious ground for complaint has been the detention of American ships outside British, terri-* torial waters for searching of neutral mails. Freighters to and from Bergen, forced into the war zone, have their cargoes examined. This is 'more ; serious than- the! search of the "[ Atlan- ■ tic Clipper's mails at Bermuda^ which is indisputably British." \ DIAMONDS BY POST EXPORT TO EUROPE CAUSE OF BRITISH ACTION (Received January 23, 12.45 p.m.) WASHINGTON, January 22. The Associated Press learnsauthoritatively that the British. search of United States mails to Germany yielded large quantities of diamonds, which are regarded unquestionably as contraband and * are a valuable means of foreign exchange in south-eastern Europe. The displeasure of the United1 States is no greater; than that of the British Embassy, which is very irritated at the indirect means whereby, the United States displeasure was publicised and the failure' of the newspapers to seek the British viewpoint or to present fully the evidence of an organised campaign by certain small but determined groups in the United States to assist Germany, which was revealed in the British reply. PURCHASE OF PLANES VAST BRITISH PLAN EXCHANGE DIFFICULTY NEW YORK, January 21. The Washington - correspondent of the "New York Times" ; says that Britain is preparing to spend 1,000,000,000 dollars on aeroplanes and other essential military supplies in the United States and is seeking dollar exchange for the purchases. ; It is understood, that the Administration is worried about the exchange situation that such a huge purchasing j plan will produce, though the purchases j will tend tojoffset' the lossbf: United -, Spates'lxade^TC^ blockade. "V>. •••; :■v- \ Britain had 1,250,000,000 .dollar* ■ of!