ARMS INQUIRY RESUMES.

Pahiatua Herald, Volume XLIII, Issue 13176, 7 February 1936, Page 5

ARMS INQUIRY RESUMES.

DR. JEKYLL AND MR. HYDE AT WORK.

IMPERIAL UHEMIGALS UNDER FIRE.

United Press Assn.—By Electric Telegraph—Copyright. LONDON. February 5

Sir Philip Gibbs and other Commissioners keenly questioned Sir Harry McGowan, the chairman of directors, about the military products cf Imperial Chemical Industries, Limited, at the resumption of the- Arms Inquiry,

Sir Harry McGowan said that while they were not an arms firm in time of peace they had great potential resources for the manufacture of military material and much of their equipment was convertible to war-time uses. The firm manufactured no mustard or lethal gas. It exported chlorine for commercial purposes. There had been no noticeable increase in the export o-f chlorine to warring countries. Sir Philip Gibbs, alluding to evidence at the American Arms Inquiry, said it seemed that Imperial Chemical Industries had acted the part of Dr. Jekyll and Mr Hyde in China, selling powder and explosives in some parts and fertilisers in others. Sir Harry McGowan said that if the Chinese Government wanted anything his firm sold it. Siir Philip Gibbs: You were no doubt supplying the Japanese for the invasion of Manchuria and simultaneously supplying the l Chinese with materials to defend Manchuria. Sir Harry McGowan: If a private manufacturer does not supply them they would put up their own plant-. CARTRIDGES FOR ITALY.

Hi r Philip Gibbs alluded to arrangements between Imperial' Chemical Industries and firms abroad, and gave- an instance of a plan under which cartridges for Hotchkiss guns could be made in Italy, where the guns were being made. “I imagine you have helped this firm to make cartridges for use in a war which the League has shown its disapproval,” he said.

Sir Harry McGowan: The agreement expired on November 10, 1935. If we had not shown them, somebody else would. Sir Philip Gibbs: That’s not verygood. In answer, Sar Harry McGowan read a letter to a South American representative emphasising that Imperial Chemical Industries was anxious to avoid foreign countries having supplies of explosives without having need of them, and stressing that the position was difficult, because if private firms refused orders the Governments would start their own factor-

XOT ALWAYS THEIR POLICY. Sir Philip Gibbs said that the letter was impressive, but it had not been always the policy of Imperial Chemi ca 1 Industries.

Sir Eldon Bankers, chairman of the inquiry, asked the purpose of the firm’s numerous investments in foreign companies. Sir Harry McGowan: We think it is a. good thing to do. Sir Eldon Bankers: I will try to answer. You can at least see what the Government of a country is doring. It is a good investment, and better if there happens to be a war. Sir Harry McGowan stressed that Imperial Chemical Industries had no international arrangement detrimental to the British Government. The inquiry was adjourned.

WAS AMERICA PUSHED IN? WASHING!ON. Feb ruary 5. The Senate investigation of J. Pierpont Morgan anti his associates officially closed to-day with a general feeling of amity on all sides, but with the minimum accomplished towards determining the reasons why America entered the W orld War In fact, from, the point of view of Senator Nve and his associates, who undoubtedly wished to pilpve that banker pressure forced President Wilson’s hand, the inquiry might be described as a fizzle, for in closing the committee, poin-tly stated that nothing had been produced to discredit Morgan or his bank. To this Morgan replied: “I have had a fine time. I would not have missed this investigation for the world.”

The last day’s session was devoted to a general discussion on war debts, in which Messrs Lamont and Leffinwel’l, who was in the Treasury during the war, contended that the loans to the Allies had been soundly issued, but the post-war mistakes of all the Governments, including the American, made their liquidation see mi n gly impossible. members questioned Messrs Lament and Leftinwell at length for some suggestion of feasible means to adjust the debts, but none could be offered and on this note the inquiry closed. Although he advanced no definite formula for debt collections, Mr Lament. expressed the opinion that n Jump sum would be an “admirable settlement.” He thought fresh negotiations might lead to such a. settlement if they were made “free from any political influences.”