WAR PURCHASES

Waikato Times, Volume 126, Issue 21035, 10 February 1940, Page 7

WAR PURCHASES

UPSET IN INDUSTRY AMERICAN PRECAUTIONS CONFERENCE CONVENED (United Press Assn.—Elpc. Tel. Copyright) WASHINGTON, Feb. 8 In furtherance of the Administration’s policy to meet the long-range effects of continued large war purchases from the United States it is likely that a conference will be held at the White House to-day between President Roosevelt, Mr Cordell Hull, Army and Navy and other departmental heads. It is feared that foreign purchases may rapidly increase the prices of materials needed at home, and also that the financing of extended aeroplane factories with foreign capital may be carried too far and result in a post-war collapse of industry. President Roosevelt is reported to be anxious to formulate a policy of keeping the war demand within reasonable bounds. The Secretary of the Treasury, Mr H. Morgenthau, has said that he favours letting industry do its own policy making. Officials of the Atlas Powder Company state that Britain has advanced the money for the construction of an explosives plant, the total output of which will be consigned to Britain and France. It is understood that payment will be gauged according to tonnage. It is officially stated that the production capacity of the United States aero-engine plants is 1000 engines a month. It can reach 1500 a month by the middle of July and 2000 by the end of the year. It is estimated that the year’s production will be about 15,000 motors, of an average of 1000 horse-power. Of this number the United States Army and Navy will require 7500 to 8000. The Allies have contracted for virtually all the remainder.

A German district leader told Dutch journalists who were on a visit to the Austrian Tyrol that between 60,000 and 80,000

Tyroleans from Italy would shortly settle there, and that a new suburb of the city of Innisbruck was being planned.