DRASTIC CHANGES

New Zealand Herald, Volume 79, Issue 24275, 16 May 1942, Page 8

DRASTIC CHANGES

SAR PRODUCTION PLAN UNITED STATES MOVES HUGE SCHEME PROPOSED PLANES REPLACE SHIPS By Telegraph—Press Association—Copyright (Reed. 9.50 p.m.) NEW YORK, May 15 The Washington correspondent of the Herald-Tribune says American war leaders have decided to make immediate and most drastic changes in the war production programme with a view to speeding up the already tremendous output of weapons. They expect that these changes will supply the United Nations so fully with armament that victory will be achieved within gix months or a year from now. The changes include three major points. Firstly, the abandonment of the construction of new plants, because all metals and materials must be used directly for weapons. Secondly, to drive to the maximum the exploitation of all existing plants. Thirdy, reconsideration of the entire aeroplane building programme with a view to the construction besides bombers and fighters of a huge fleet of giant transport planes to replace the cargo capacity of ships sunk by enemy action. Mr. William Green, president of the American Federation of Labour, addressing the executive council of the Federation, disclosed that the delivery rate of Flying Fortresses has been more than doubled since the attack on Pearl Harbour, while the total monthly production of combat planes now exceeds the entire annual output of 1939. The American output of tanks already exceeds the total Axis output. Thirty-six new merchant ships were launched in April. A message from Ottawa states that the Minister of Munitions and Supply, Mi". C. D. Howe, told the Canadian House of Commons that Canadian war industry had reached the 4,000,000.000 dollars mark, "compared with almost r.ero in 1939." The aeroplane industry had been amplified very extensively in personnel, and at present puts out 400 planes monthly. The House of Commons cheered enthusiastically when Mr. Howe further disclosed that Canada was launching a 10,000-ton merchant ship every four days and hopes to reduce the period soon to three days. NEW PARTY POLITICS IN BRITAIN ' TOTAL WAR EFFICIENCY ;<Recd. 5.5 p.m.) LONDON, May 15 Two groups of the House of Commons, including Mr. 1 W. J. Brown, Captain A. S. Cunningham-Reid (Conservative —St. Marylebone) and Mr. E. G. Granville (National-Liberal Eye, Suffolk) have announced the formation of a movement called "The People,'' with constituency committees throughout the country. The movement's objective is to obtain total efficiency for total war. A manifesto says: "The. movement has three main approaches, firstly, to stop the stream of inefficiency at its source; secondly, to punish those in high places in politics, industry and the services, when they deserve it; and thirdly, to encourage members of the House of Commons and candidates subscribing to these views to fight those who don't." It is officially announced that the office of Government Whip has been withdrawn from Captain CunninghamReid, who supported Mr. W. J. Brown et the Rugby by-election. HEAD TAX- ADVOCATED WOULD BRING IN MILLIONS [(Reed. 5.5 p.m.) WASHINGTON, May 14 Mr. Henry Morgenthau, Secretary of the Treasury, advocated to-dav a minimum head tax of several dollars on everyone filing an income tax return, regardless of the amount of income. Under existing laws millions of persons at present filing returns escape because deductions exceed income. Mr. Morgenthau suggested five dollars was a suitable minimum for the head tax and estimated that the. Treasury could collect 100,000,000 dollars from this source.

TRADE AND PROSPERITY

PROBLEMS FOR FUTURE LONDON, May 14 An announcement that the Board of Trade has appointed a representative committee of industrialists to prepare the future development of the British export trade has led to speculation in the press as to the directions such developments may take, says the British official wireless. The Times says: "Trade can flourish only in' a world where the standards living of potential customers are progressively rising, so the promotion ol prosperity in other countries is of direct British interest. There must be an end to the conception of international trade as a dog fight in which a hone of fixed dimensions is scrambled for, and the hope of gain depends on excluding some hungry competitor. Planning for the future must be done in terms of commodities rather than countries if Britain is to be true to the policy of non-dis-criminatory trade, which was 'proclaimed in the Atlantic Charter as the goal of the United Nations." The first question arising was what commodities could be placed on the world market which were of better quality or more efficiently produced than could be found elsewhere, the Times adds. The whole issue was bound up with the future of Anglo-American relations. A struggle for markets would bo detrimental to both. CANADA IN TIIE AIR GROWTH OF AIR FORCE (Reed. 7.80 p.m.) LONDON. May t I The impressive development of Canadian air power is shown by the further details given by the Dominion Air Minister, Mr. C. G. Power, who disclosed that Canadian airmen are taking part now in every bombing raid over Germany. One Canadian squadron is operating in the Far East and two in the Near-East. Wherever the Royal Air Force operates graduates of the British Commonwealth air training plan, of which Canada is the centre, are flying and fighting. The strength of the Canadian Air Force is estimated at over 115,000 exclusive of attached Australian, New Zealand and British airmen. Its output of air crews is 25 per cent above the objective. The 42,000,000 dollars programme for building home defence aerodromes on both coasts is under way." Up to now Canada has spent 8, dollars on war, according to -an official statement. Major items; are aircraft, shipbuilding, ordnanda, land transport and construction jwddefence .projects.