HASTE URGED

New Zealand Herald, Volume LXXVI, Issue 23320, 13 April 1939, Page 11

HASTE URGED

BARTER PROPOSAL AMERICAN ACTION ROOSEVELT'S WARNING DICTATORS AND WAR By Telegraph—Press Association —Copyright (Received April 12, 7.40 p.m.) WASHINGTON, April 12 President Roosevelt, at a press conference, urged swift congressional action to pave the way for the new barter plan, by which it is proposed to exchange American wheat and cotton for rubber and tin from the democracies. Mr. Roosevelt also made it plain that his farewell remarks at Warm Springs constituted an indirect warning to the dictators that they must reckon with the United States' moral, if not physical, force in any war they may wage against the democracies. In the course of an interview with a representative of the Australian Associated Press, Senator James F. Byrnes disclaimed any intention to injure Australia and Canada or other normal suppliers of the British wheat market by his barter plan.

Normal Markets Safe Mr. Byrnes said:. "The proposal has no connection with ordinary commercial transactions. Normal market operations should not be affected. Our Australian and Canadian friends should not be injured. The proposal is to store all wheat, cotton and other goods under agreement that they shall not enter commercial channels for at least five years. "With wheat particularly, also somewhat with rubber, there would be deterioration which would necessitate a portion of the stores being consumed yearly in order to avoid loss, but an equal, amount would be replaced in storage. Therefore the stored Btocks would remain the same. "It should be remembered that the proposed stocks would be identical with the stocks of military materials we already hold in reserve, such as ammunition. That also deteriorates, but if we replace a regular amount equal to what is withdrawn for consumption yearly, we do not disturb regular business.

Transferring of Surpluses "I see no way by which the plan would affect regular consumption demands in Britain or elsewhere. Therefore, I see no effect upon normal commercial operations. It is only a matter of transferring surpluses from a location where they are of limited value at present to places where they may be of considerable value in the event of an emergency." Officials conceded that Australia and Canada might lose to the extent that the United States would substitute for them, as supplier, at least of of the British reserves, but it is contended that neither Australia nor Canada could regard the move as disadvantageous to their normal business.