PLAN ENDORSED

New Zealand Herald, Volume LXXVI, Issue 23319, 12 April 1939, Page 11

PLAN ENDORSED

OFFICIAL BACKING WARNING TO AGGRESSORS FIRST STEP IN POLICY AID "STOP HITLER" BLOC By Telegraph—Press Association —Copyright (Received April 11, 11.50 p.m.) WASHINGTON, April 10 A statement issued by Mr. Cordell Hull to-night, endorsing Senator Byrnes' barter plan, made it clear that the scheme has the Administration's backing. The statement also appeared to confirm the impression that the proposal has far greater implications than the mere disposal of surplus wheat and cotton for the benefit of American farmers. It is now regarded as Mr. Roosevelt's first step in accordance with his policy of adopting "methods short of war, but stronger and more effective than mere words" as a warning to aggressors. Mr. Hull explained that the proposal was that the State Department "should find out whether certain other Governments are willing to enter into exchange with the American Government of certain raw materials reciprocally desired for emergency stock purposes, and for such purposes only."

Foodstuffs in "War Observers quickly noted that under such an arrangement tho United States would be in a position to aid the "Stop Hitler" bloc by sending foodstuffs needed badly in the event of war, and thus the programme would accomplish many of the objectives of the controversial Pittman resolution to amend the Neutrality Act by giving nations which have control of the seas —meaning Britain and France —ready access to American supplies on a cash and carry basis.

Further, Mr. Byrnes' proposal would give the Secretary of State full authority to negotiate such treaties with whatever nations he selected, since the purpose of the plan is to acquire noncompetitive strategic materials, neither of which Germany and Italy possess. The Fascist Powers would be excluded from the programme. Empire-Grown Wheat

It was impossible to ascertain tonight whether in approaching Britain the sponsors of the plan have anything in mind to obviate the difficulties arising from Australian and Canadian supplies of wheat to Britain. The introduction by the Administration of a resolution authorising the President to impose embargoes and perhaps take over retaliatory action against Japan was discussed to-day. The step would be part of the campaign to revise the Neutrality Act and an answer to those critics of Senator Pittman's plan, who say its operation would be to Japan's benefit and China's detriment.

American Public Opinion Another step contemplated is the introduction of a resolution extending the cash and carry provision for <a further year. Mrs. Roosevelt stated to-day that her transcontinental lecture tour had convinced her that people are beginning to doubt whether the United States could isolate itself. She encountered much less isolationist sentiment than formerly. s "Isolation seems to be a hope, not a possibility," said Mrs. Koosevelt. She found no hatred or bitterness about conditions in Europe, "but," she added, "people are a little appalled."

HITLER MUST HURRY EAST EUROPEAN POLICY ECONOMIC DIFFICULTIES LONDON, April 7 Shrewd observers in Berlin point out that Herr Hitler not only has a definite policy for Eastern Europe, but that he must hurry to complete it while the Reich can bear the economic and financial strains that the policy involves.

For instance, the Berlin correspondent of the Times says: "The food situation continues to deteriorate. Iron gates and fences are going into the melting pot of the armament works. The latest Reichbank returns show an expansion in loans of 1,200,000,000 marks, over the previous week. Currency circulation is at a new high record, and the expansion of Government revenue will stop in 1940. The published Reich debt increased by almost 1,000,000,000 marks in January; in 1938 it increased by 10,000,000,000 marks, to a total of 28,000,000,000 marks.

"The new finance plan, under which the Reich will borrow 40 per cent of its payments to contractors, is admitted to be practical only on the basis that expenditures return to normal within a year or two."