INDUSTRY LIMITS

New Zealand Herald, Volume 78, Issue 24127, 20 November 1941, Page 10

INDUSTRY LIMITS

AUSTRALIAN REJECTION REPLY TO AMERICA EFFECT ON COURSE OF WAR (Recti. 12.40 a.m.) CANBERRA, Nov. 19 The Commonwealth Government has informed the United States it cannot accept proposals which would limit the future development of Australian industries. The proposals of the United States in trade discussions were first, no extension of existing Australian industries producing goods of the kind which America is supplying to -Australia; second, no establishment of new industries to produce this kind of goods. The American viewpoint was that it would be unreasonable to expect America to build new plants and expand existing industries to supply Australia's urgent war needs and be shut out of the Australian market as soon as the war was over. In declining to agree to tho proposals, the Australian Government intimated that it felt Parliament should not be fettered for years ahead on matters of fiscal policy. The Government further contended that far-reaching trade agreements might prolong the war, because they would be equivalent to telling the people of occupied Europe that,' no matter how the war ended, they would be shut out of the BritishAmerican economic sphere after the war. POST-WAR CO-OPERATION BRITAIN AND AMERICA ECONOMIC PLAN INDICATED NEW YORK. Nov. 18 The New York Times' correspondent in Washington states that the United States and Britain have made substantial progress _ toward agreement on broad economic post-war plans. He says .negotiations are proceeding in London to reach a master agreement on the settlement of lease-or-lend obligations. • It is understood that the State Department has asked the British Government to co-operate in the removal after the war of restrictions on free trade and to give all nations fair access to raw materials controlled by Britain. This is interpreted as meaning that the United States is asking Britain to reconsider tho Ottawa Agreement system. Something on these lines is expected to be made public by both Governments in about two months' time in the form of a declaration of their intentions. NEW AIR OFFENSIVE PLANS AGAINST BRITAIN GERMAN MOVES REPORTED (Reed. 5.35 p.m.) LONDON, Nov. 10 Reports from Dutch and Belgian sources, not confirmed, state that the Germans are preparing for a new air offensive against Britain. Aerodromes in Belgium and Holland are said to be filling up gradually with German fighters and bombers. A few enemy raiders were over Britain last night. They operated mainly over East Anglia and the southeast of England. Bombs caused some damage and a small number of casualties has been reported, including some deaths. An Air Ministry communique quoted by the British official wireless says that British fighters, including some carrying bombs, were over northern France yesterday. A factory was bombed and warehouses, a goods train and railway yards were machine-gunned. Off the French coast a small enemy ship was attacked with gunfire. When the vessel was last seen only the funnel was showing above the water. One enemy fighter was destroyed. Beaufighters in the afternoon attacked an enemy patrol vessel off the Dutch coast. Numerous hits were obtained with cannon and machine-gun fire on the bridge and near the engine room. No aircraft are missing from any of these operations. SECOND FRONT LANDINGS ON CONTINENT MOSCOW NEWSPAPER'S VIEW (Reed. (3.10 p.m.) LONDON, Nov. 18 The two "symbolic" British landings on the Continent this year—one in Northern Norway and the other oti the French coast —are mentioned by the Moscow newspaper Pravda, which, in a leader, says that what astounded the Germans most in Stalin's recent speech was his confident statement that a second front must be established in Europe. The Pravda adds that the German propagandists after that redoubled their efforts to prove that a second front could not be created. After expressing the opinion that tho entire coastline of the Continent is fully accessible for landings by air as well as by naval parties, the Pravda says the establishment of a second front would be greatly facilitated by "interaction" between the British and the American navies and by constantly increasing American aid for Britain and Russia. COST OF A.R.P. WORK GENERAL BLAMEY CRITICAL PRIME MINISTER DISAGREES (Reed. 10.30 p.m.) SYDNEY. Nov. 19 The Commander-in-Chief of the Australian Imperial Force, General Sir Thomas Blarney, said he thought that the extraordinarily large sums being spent on air raid precautions in Australian cities were out of proportion to the risk involved, lie said Australian cities could only be attacked by seaborne aircraft, whose numbers would be limited by circumstances. Aircraft j carriers themselves would be a highly vulnerable target, as had been proved on several occasions. The Prime Minister, Mr. Curtin, revealed himself at variance with General Blarney. He said: "I cannot share the illusion that what happened in other countries cannot happen here." He announced that the Commonwealth Government intended to take no risks and would this week allocate £125,000 to all States for air raid precautions. This constituted the second instalment of the £500,000 promised by the last Government. MORE CANADIANS ARRIVAL IN BRITAIN (Rood. 5.5 p.m.) LONDON, Nov. 18 Thousands more Canadians have arrived safely in fulfilment of Mr, Mackenzie King's pledge that "every month would see more Canadians in Britain to share, in her defence," says the British official wireless. The Canadian military headquarters says that the new arrivals include field artillery and service corps units from the Canadian Prairies. With them also came hundreds of airmen trained under the Empire Air Training Scheme. The convoy ran into a heavy storm, but arrived safely in a British port without encountering a U-boat or sighting any hostile aircraft.