AMERICA CONCERNED

Evening Star, Issue 23481, 23 January 1940, Page 7

AMERICA CONCERNED

TRADE HIT BY BRITISH WAR ECDHOMY DRASTIC REDUCTION IN EXPORTS MAIL CENSORSHIP RANKLING WASHINGTON, January 22. The United States is becoming increasingly concerned over the effect of the British war economy on American export trade shipments to Europe, representing one-third of tho total. The exports have been drastically reduced, not only because of direct belligerent activities, but also because of the British blockade of neutrals who might tranship to Germany. Another factor is tho closing of British markets to conserve the dollar exchange and strengthen the economic and political ties between the Allies and friendly countries. This is damaging United States agricultural exports, particularly wheat, tobacco, cotton, and fruit. The volume of agricultural products exported in November was the smallest since the 1934 drought. TOBACCO AND COTTON. Officials fear that British failure to buy United States ohacco will create a domestic surplus and depress prices. Planters are planning to produce 500,000,0001 b weight in 1940, compared with 1,000,000,0001 b last year. Similarly, it is feared that cottongrowers will suffer as a result of the British decision to allot shipping space for only 10,000 hales a month during the next six months. Exporters may not be able to move all the cotton sold. While war material purchases may offset the losses to some degree, the United States is also being forced from the Argentine. the leading Latin American market, because the British are buying Argentina wheat and meat, forcing the Argentine, and to a lesser extent* Brazil, to reciprocate. PUBLIC OPINION AFFECTED. The general position is creating considerable irritation. It is stated that it has been made clear to the British Embassy that public opinion is being adversely affected, CENSORSHIP DISPUTE. The ‘New York Herald-Tribune,’ in an editorial, infers that the State Department’s disappointment at the rejection of the mail censorship protest refers less to the protection of mails than, to the possible 'effect ‘of, the British attitude on American opinion. “ There have been some bints that our protest is designed to give the British an opportunity to make effusive apologies and! unimportant concessions which could be used to mollify domestic criticism. Flat legalistic rejection of the protest, coupled with the tart if justifiable query, Why have you not protested against the German method of sinking mails without warning, is not helpful. The State Department cannot publicly admit that it will protest only to the point where protests hurt one side, but to continue protesting with the mental reservation that it will not be pressed to a point where it embarrasses the recipients is productive only of confusion, bad blood, and misconceptions.” NEED FOR CAUTION. The ‘ Tribune ’ urges that a protest must be used) with caution and the Severest realism. It should not begin with defence of abstract rights without considering the practical effect on war and United States interests therein, but when tho protest is made it should leave no doubt that it is meant seriously. GROUNDS FOR COMPLAINT. The ' New York Times,’ in an editorial, says: “ Many annoying ingredients have gone into the diplomatic brew that boiled up at the week-end because of British interference with American mails andl foreign trade, and Lord Lothian has been left in no doubt of the United States* displeasure. Probably the most serious ground for complaint has been the detention of American ships outside British territorial waters for searching neutral mails. Freighters to and from Bergen are forced into the war zone and have their cargoes examined. This is more serious than the search of Clippers’ mails at Bermuda, which is indisputably British.” ORDERS FDR PLANES DIFFICULTIES OF DOLLAR EXCHANGE NEW YORK, January 21. The Washington correspondent of the ‘ New York Times ’ says Britain is preparing to spend 1,000,000,000 dollars on aeroplanes and other essential military supplies in the United States, and is seeking the dollar exchange for the purchases. It is understood that the Administration is worried about the exchange situation such a huge purchasing plan will produce, although the purchases will tend to offset the loss of United States trade, resulting from the British blockade. Britain had 1,250,000,000 dollars of negotiable securities in the United States at the outbreak of war, but the Administration seeks to avoid extensive liquidation because of the possible effect on the domestic securities market. Mr Henry Morgenthau, Secretary of the Treasury, is seeking means of facilitating the expansion of aeroplane and engine factories to permit the filling of British orders. OTHER SIDE OF PICTURE AMPLE CAUSE FOR BRITISH DISPLEASURE WASHINGTON, January 22. ((Received January 23, at 1.5 p.m.) The Australian Associated Press learns authoritatively that the British search of .United States mails to Ger-.

many yielded'a large quantity of diamonds, which are regarded as unquea* tionably contraband and a valuable means of foreign exchange in southeastern Europe. The United States’ displeasure is no greater than the British Em- ; bassy’s, which is very irritated at the indirect means whereby United States displeasure is being publicised by the newspapers and their failure to seek the British viewpoint or present fully the evidence of an organised campaign by certain small, but determined, groups in the United States to assist Ger- ‘ many which is revealed |n the British reply,