WAR PURCHASES

Evening Star, Issue 23497, 10 February 1940, Page 11

WAR PURCHASES

POSITIOK IN AMERICA FEAR OF RISING PRICES FOR DOMESTIC REQUIREMENTS WASHINGTON, February 8. The Administration’s policy to meet the long-range effects of continued large war purchases from-the United States is likely to result in a conference between President Roosevelt, Mr Cordell Hull, and departmental heads at White House to-day. It is feared that foreign purchases may rapidly increase the prices of materials needed at home and that the financing of expanded aeroplane factories with foreign capital may be carried too far and result in post-war collapse of the industry. President Roosevelt is reported t» be anxious to formulate a policy for keeping war demands within reasonable bounds.

Mr Henry Morgenthau, Secretary oS the Treasury, 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 will be consigned to England and France. It is understood that payment will be gauged according to tonnage. If is officially stated that the production capacity of. United States aero engine plants is 1,000 a month, and will reach 1,500 by the middle of July and 2,000 at the end of the year. It ia estimated that a year's production will be about 15,000 motors of an average of 1,000 horse-power. Of these the United States army and navy will require 7,500 to 8,000, and the Allies have contracted for virtually all the remainder. ARMS FOR FINLAND AMERICA'S DIFFICULTY WASHINGTON, February 9. (Received February 10, at 10.30 a.m.)' President Roosevelt told a Press conference that he doubted whether the United States could sell guns directly to Finland, because it was engaged in an armed conflict. He confirmed the report that there had been a White House conference which discussed surplus supplies. SOVIET TRADE OFFICE THE PARIS RAID IMPORTANT DOCUMENTS SEIZED PARIS, February 8. Documents seized in the Soviet offices reveal that the operations of M. Fay were beyond the scope of a trade mission's functions. The documents also revealed close collaboration with Ger-man-Russian propagandists. Plainclothes men entered the offices at 9 a.m. and forced the safes to obtain files. They met officials arriving and escorted them to their homes, which they searched. The raid was part of the operations against Communists throughout France. COPPER FOR RUSSIA SHIPMENTS FROM MEXICO FINAL DESTINATION MAY BE GERMANY NEW YORK, February 8. The Mexico City correspondent of the ' New York Times ' confirms : the report that Manzanillo has become the clearing house for United States copper for Vladivostock, from where, it i» suspected, it will be railed to Germany. The opinion is expressed that it will be shipped from Mexico in American bottoms because the Soviet cannot spare ships for the long voyage. Three thousand tons of copper and 2,000 tons of lead are awaiting .the arrival at New York of the Soviet freighters Engels and Kim.