RELATIONS WITH AXIS ENDED

Southland Times, Issue 24650, 23 January 1942, Page 5

RELATIONS WITH AXIS ENDED

South American Decision

(Rec. 11.30 p.m.) RIO DE JANEIRO, January 21. All the American Republics, including Argentina, have agreed to sever relations with the Axis, according to a high official source. Argentina and Chile officially agreed to sever relations with the Axis, with the “face-saving” gesture requiring Congressional ratification of the action of their Foreign Ministers. A four-point agreement was reached after a three-hour conference attended by the leading delegates. It is regarded as a victory for the United States. WAR PRODUCTION PLAN The conference at Rio de Janeiro is expected to approve the gigantic war production plan embracing the entire hemisphere and including the abolition of trade barriers, the establishment of a common currency and the use of United States Air and Naval units to convoy the hemisphere’s shipping. This was disclosed by a high official of the Commerce Department in Washington. The Hemisphere War Production

Plan includes the creation of an emergency labour programme for the hemisphere, by which skilled labour will be allowed free movement between countries to meet labour shortages. In return for pooling the hemisphere’s shipping, the United States will take the responsibility of transporting war supplies and essential exports and imports in convoys with naval and air protection. The Latin Americas will nationalize all air lines and air services for a 10-year period, the United States underwriting the cost of maintenance.