Show y 1 wr ii i i ir A weekly News Analysis reversal of foreign pot policy ic 0 y se seen e n in U S br british ibish loans to china by joseph W la line EDITORS when opinions are expressed in these columns they are r those of the news analyst and nd not no necessarily of cl the newspaper international although U S british sympathies in the chinese jap war have always been with china industrialists of both nations have gladly profited by selling arms to td more prosperous japan in the U S this activity continued unabated until last june 11 when secretary of state cordell hull asked that it be discontinued still later came a serious blow to U S prestige when japan having conquered shanghai canton bankow and proceeded systematically to shut chi nas open door in violation of the nine power treaty obviously U S british supremacy in the orient was at an end unless the two nations would reverse their soft stepping policy and take military or economic recourse against tokyo after weeks of undercover negotiation between london and washington the recourse now emerges as economic still acting without without apparent coop co op aeration era tion the two capitals made similar news on the same day washington the government op aerated export import bank advanced in credits to a new york company for exporting U S agricultural and manufactured goods to china recognized as a very thinly veiled government loan most funds will be used for automo z JESSE JONES his flis bank answered japan bile trucks and gasoline to haul munitions over the new chinese gateway from burma to mature in five years the loan is guaranteed by the bank of china chief U 5 negotiator was jesse jones chairman af of the reconstruction finance corporation london now en route through parliament is an allotment of pounds for export credits to protect great britaina Brit ains tar far flung foreign trade from nazi encroachment already earmarked is an initial credit of pounds for the chinese government to purchase trucks and road making equipment for or the new burma gateway also under consideration is a british loan to the chinese exchange equalization fund to help chinas cainas dollar rumania of all the lesser european nations subjected to nazi germanys germanas Germ anys ical economic pressure rumania has alone stood up on its feet and barked back reason rumania has been able to buy her imports anywhere she desires but germany must have rumanian wheat and oil until last tall fail this upper hand served king carol well but the ring of nazi dominated nations around bucharest has now grown so powerful that he must bow to berlin berli n or risk economic starvation tion thus rumania watched anxiously its as german aggression in austria and czechoslovakia threatened to wipe out her prospering trade with those two nations since most of Ru manias czech imports came from now a part of germany the reich gained an enormous loiis advantage through this territorial rit orial acquisition to woo rumania successfully germany must only meet the dilatory competition of great britain whose promise to buy part of king carols wheat surplus is overshadowed by a german offer to buy all of it thus heartened rumania has signed a trade agreement whereby the reich will take almost a third of its exports meanwhile buying haffits half its imports from berlin how long rumania can remain independent of germanys germanas Germ anys beck and call is problematical like a child who wants cake but wont brush its teeth king carol has successfully cess fully smashed the rising nazi party within his borders yet he followed this coup with a totalitarian declaration under which rumania becomes a one ohe party country politically similar to germany likewise while begging for german trade he has started an intensified program of fortification against german aggression spain on a gloomy november day in 1931 parliament stripped king alfonso of his citizenship and properties already the previous april alfonso had left for france soon taking residence in italy where premier benito mussolini has not been unfriendly to his once royal guest since the loyalist government that ousted alfonso is now fighting a losing battle to 0 generalissimo francisco franco moreover since italy and spanish royalists are on francos side observers have long thought alfonso has a good chance of returning to the throne some d day ay franco hinted as much last spring indicating that he might retain for himself the premiership and thus make the throne a puppet post this theory is now strengthened by action of rebel council of ministers not only restoring al consos citizenship but his lands as well how soon if ever the ex king kig will return to spain is still a secret but pessimists regard francos gesture as merely an insincere bid for continued royalist support which has been dwindling in recent months still others think alfonso would never return to the throne that his job would be taken instead by prince juan compromise candidate of both royalist factions the carlista Car lists and espanol ests politics smart politicians lay their campaign groundwork well in advance swapping favor tor for favor smelling out the trail that will most likely lead to success thus official washington has started buzzing with rumors following 1 resignation ot of commerce secretary daniel C roper and attorney general homer cummings and 2 vice president john nance garners return to the capital that mr garner visited president roosevelt the same day mr roper resigned gave an added zest to the game while both the president and vice president look to 1940 they apparently took look in opposite dir directions sections no public utterance followed the conference but it is quite obvious that mr garner looks tearfully fearfully on the projected appointment of administrator harry hopkins to succeed mr roper the roosevelt program to strive tor for more new deal gains such as governmental beor and to give harry hop kins a buildup build up tor for presidential nomination in 1940 the garner pro gram to consolidate the adminis trat rations ions position to unite arguing factions actions and make a record in congress which will win public approval both programs program lead to 1940 but each goes down its own trail in the inevitable compromise it is expected that mr hopkins will be named commerce secretary but that in return congress will demand drastic revision ot of relief administration how this solution could clarify the 1940 presidential issue is not apparent moreover conservative elements in the democratic party doubt that the commerce depart Z P VICE PRESIDENT GARNER GARNE R he also looks forward to 1940 ments immediate charge U S business will me like the man whose job has been to dispense since 1933 while gossiping over this morsel politicians have let pass almost unnoticed an equally important bit of groundwork leading to 1940 john L lewis C 1 10 0 chieftain has spoken publicly against a labor sponsored third party choosing instead to broaden his labors nonpartisan league its program to elect delegates in the presidential primaries who will assure nomination of progressive candidates this means that C 1 I 0 endorses continuation of the new deal and that a move to the right would cause the lewis front to bolt from the democratic convention pan america if the U S hopes to win latin american friendship and stave off totalitarian influence in the western hemisphere she must at once convince her southern neighbors 1 that the ua US no longer seeks to dominate this hemisphere and 2 that the U S must nevertheless continue in the role of guardian angel over pan american nations the difficulty of this position stared president Roosevel ts delegates in the face long before the pan american conference opened at lima and after three weeks of consultation sul tation it still remained evident that nothing more concrete than well intentioned resolutions would emerge from the meeting secretary of state cordell hull realizes that without absolute unanimity of opinion pan americas attempts to block german italian japanese influence will carry little weight such unanimity cannot be reached because hungry argentina insists on developing her trade with germany and mexico will continue to expropriate foreign owned land As the conference neared an end it appeared the most concrete result would be perfection of consultation machinery under which ministers of all american nations would meet every two years but secretary hull could also be happy over the good sense that induced democratic president roosevelt to choose republican alt alf M landon as a delegate to lima far more significant than any resolution more potent than any argument of good intentions which the U S could offer was republican lan dons radio speech warning totalitarian countries that washington would always stand pat on its monroe doctrine its significance whereas dictatorships tor ships have profited through great britaina Brit ains vaccinating foreign policy torn by a chamberlain bloc eden bloc cliveden sev set and peace at any price bloc republican landoas Lan dons support of democrat Roosevel ts foreign policy showed clearly that the U S is united on at least one subject agriculture V U S cotton farmers having voted to impose taxes on any producer who markets more than his share in 1939 last springs agricultural adjustment act seems destined for enforcement next year with little change not only the cotton election but three other signs have given encouragement to AAA supporters 1 at new orleans president edward A oneal of the powerful american farm bureau federation told his convention that AAA coupled with the soil conservation act the marketing agreements act and allied legislation gives us the best allaround all around farm program we have ever had hitting criticism based on currently low wheat and cotton prices he said everybody knows the law was passed too late tor for wheat growers to comply and everybody knows that the cotton surplus was produced in 1937 not 1938 compare the farm income this year with the 1932 figure and then say candidly whether or not our programs have helped the farmer the importance of mr statement is that farm bureau opinion could be a mighty force against AAA abolition agitation 2 at winnipeg AAA administrator R M evans spiked rumors of drastic wheat acreage curtailment next year by pointing out that U S farmers could not be expected to accept such curtailment without similar action by other exporting nations hoping that government subsidized exports need be only a temporary measure mr evans nevertheless erth eless defended it as a justified step to give the U S a fair share of the export market 4 3 at washington F R wilcox of AAA announced sale of additional bushels of wheat to the united kingdom adding to the bushels he be had already sold having committed itself to sell bushels by next july the U S was already well past the halfway mark and had begun negotiations tor for additional sales to china and mexico though such subsidized exports will help reduce the U S surplus granaries will still be tar far too full when next years crop comes in congress last winter texas rep wright patman offered congress a measure to tax chain stores out of existence its gist to levy graded assessments from cm 50 per store on small chains chain to i 1000 per store on large chains each ach store stord tax to be multiplied by the he number of states in which the he chain operated sample A chain operating ipe rating in 48 states plus the district brict of ct columbia would pay per store annually on each store over ver though boasting 73 cosponsor co sponsor mr jr Pat Pati mans nans bill failed also ct da U feared was a new york state chaj chauff ws tore store tax which signified that chains had more friends than their foes had expected but an apparently dying issue assue was revived as congress adjourned jour ned for mr patman announced his bill would be introduced in january 1939 as house resolution no 1 battle lines since formed presage a bitter contest next month as chains and anti chain agitators review their cases anti chain supporting mr patman is a once potent national trend now questionable which caused 21 state legislatures to enact chain store r x WRIGHT WEIGHT PATMAN fewer noses than last year taxes another state colorado last month rejected a referendum to kill a similar levy having won passage of his robinson patman act also an ahu chain measure mr patman bases his new attack on familiar charges that chains 1 force independent pe adent merchants out of business 2 cause low farm prices 3 take money out of the community pro chain U S census figures show a decreasing number of chain stores and more independents while federal trade commission statistics credit chains with distributing in goods at an average I 1 10 0 per cent saving to consumers if the patman bill passes resultant taxes with the great atlantic pacific tea company they would total more than half ball gross sales would destroy practically all chains would reportedly wipe out 30 per cent of the farmers market throw nearly chain employees out of work and force a sharp rise in retail prices chalao point proudly to their two year cam laign of helping farmers move sia surplus crops like lamb iamb beet beef wal walnuts mits apples and canned grapefruit juice antl anti include the american federation of labor speaking for its members who charge the measure would increase living costs and unemployment and the national association of retail boards which termed it vi vicious clous counting noses on the eve of congress opening mr patman finds his 73 original sponsors cosponsors co dwindled to 32 through election defeats while another has withdrawn support people lost by the duchess of windsor the title of worlds best dres dressed ed woman accorded andua annually y by pa islan isian dressmakers new nev title lit holy 0 er mme ame antenor patino daug s ter in law of Boll vias simon patino patin tin millionaire |