Show 1 lf EKLY KLY NEWS ANALYSIS BY JOSEPH TF IF labine predict new pact with brazil As U S staves off nazi bid for entree to south america EDITORS NOTE when opinions are arc expressed in these columns they are arc those of tile the news analyst and not necessarily of this newspaper released by western newspaper union PAN AMERICA hair gnirs s breadth many years ago when the U S clamped down on immigration millions of germans italians and japanese turned to unexploited brazil brazi 1 when adolf hitler came to power he began a diligent campaign to brazils germans just as benito benit 0 mussolini tried brazils italians to the degree that brazils braill s japs were natively loyal to tokyo to hitler one of brazils major charms was its unexplored iron deposits which might some day be taken by military force As a foundation german crews began manning german airships flom german airports established in in brazil an expensive commerce commercial al avin aviation tion venture which could never pay out except in war but one of hillers Hit lers mistakes was to barter armaments and machinery for brazilian coffee which he then dumped on the markets to obtain badly needed foreign exchange thus US TO EUROPE VIA AZORES MILES 4 0 BRAZIL U S NAVAL BASE AT guantanamo asoo MILES BRAZIL TO PANAMA CANAL AFRICA TO MILES BRAZI 1800 MILES sha R TEST ROUTE BETWEEN hemispheres J UP FROM RIO it could become a menace der mining world prices and damaging brazils Brazil ts coffee trade even this blunder was almost overcome however early this year a brazilian commercial mission was about to leave tor for berlin when the U S convinced foreign minister oswaldo aranha he should visit washington result brazil gained a loan from the U S also received aid in developing her resources and agreed in return to begin servicing her payments to american bondholders bond holders during the current summer after this hairs breadth escape came another in may gen pedro aurelio goes monteiro Mont ciro bazilian chief of staff was about to visit berlin for general staff consultations leading either cither to a co opera tive understanding or a military alliance hastily dispatched to rio de janeiro was gen george C Al marshall arshall newly appointed U S chief of staff result back home inrid in mid june came general marshall with the bacon on an american cruiser he brought general monteiro to washington where observers expected a military agreement would soon be reached between the U S and brazil the agreements substance the U S could use emergency air fields I 1 in northern brazil thus perfecting 5 the american plan to make an american lake out of the caribbean with bases at puerto rico and cuba serving as miniature Hawa hawaiian Hawaii ilas as simultaneously the atlantic clippers inaugural trip to lisbon with 30 passengers and 12 crew members gave every layman an idea of transatlantic aviation possibilities possibility es and their bearing on a U S pact with brazil should a european power beat us to the draw brazil might casby become an operations base from whence bombers after crossing the atlantic at its narrowest point might work against the panama canal puerto rico and even the U S itself see map BUSINESS housing doldrums most V S industrialists believe government policy is holding back recovery but this belief is not universal for a recent gallup poll showed public opinion well split on the responsibility business itself got plenty of blame A few weeks later steelman celman St ernest T weir admitted he thought the principal responsibility for his indu nine year losing streak rested on the shoulders of steel corporation management true or not that charge gave trust buster thurman arnold good biml justification if cation tor for probing deeper into cause most economists agree that the U S boom when it comes will begin with re n bcd housing activities hence it 1 to tn this held field that mr arnold will 1 lock c first with h his is new ap pr ani and enlarged legal perc peri I 1 ial to police american bust busi n lazic abc atc idea cf the justice depart mc ts dri drive ve is that a large well tr ned i c an buu 1 trust s staff aff should ferret out illegal combinations of manufacturers wholesalers retailers contractors and labor leaders once such illegal groups are smashed mr arnold thinks business paralysis caused by high costs will cease his allegations regarding the business industry producers of building materials have eted bcd prices either by private arrangement or as the principal activity of trade associations owners of patents on building materials have used them to establish restrictive strict ive structures of price control control of sales methods and limits upon the quantities sold regarding labor unions in recent years they have frequently been used as the strong arm squads for collusive agreements among contractors refusing to supply labor where the contractors ring wishes labor withheld in other cases the unions themselves have refused to permit the use of new products or new nev processes because of their fear that the new method might make it possible to erect a new house with fewer hours of labor than the old one joker in the campaign for which mr arnold is not responsible is that he seeks to tear down industrial price fixing combines which resulted directly from an earlier less successful new deal venture which fostered collusion by manufacturers and dealers namely international 0 dussias Rus sias gain one hundred years ago a squabble between japan and great britain would have caused no repercussions in europe but challenge of occidental rights in the far F ar east is tied inseparably with brit ains efforts to perfect a military alliance with russia although germany has gloated over londona Lon dons failure both with the russian pact and in the orient best guesses are that not germany not england not japan but russia alone will have profited when international cauldron cauldren caul dron has ceased boiling germany has tried in two ways to hamstring the british while william strang of the london foreign office is conferring with dictator josef stalin the ambassador bas to russia has been ordered to work for a stalemate by offering moscow a commercial and credit agreement if germany thus joined western democracies in begging for dussias Rus sias friendship it carried the begging to still greater heights during the jap incident by singing a siren song that went something like this why should a great power like you care to tie tic 4 Y I 1 4 1 iv WILLIAM STRANG germany ridiculed his efforts up with people like the british who can now be kicked with impunity even by the japanese the second effort obviously in desperation has been to push its projected military pact with japan although ambassadors bass adors to italy and germany both favor jap participation in the communist anticommunist anti front the foreign office back home has shunned such complications for good reason japan has enough ambitions and troubles in the far east without getting embroiled in Eu ropes woes boes moreover both russia and japan bitter enemies doubt the sincerity of f a nation which tries simultaneously to win the friendship of both hence observers predict consummation of the anglo russ alliance with britain asking help in the far east Is as well as in europe thanks to japans clamping down on lon dons interests in china for britain this would be merely a I 1 last ditch defensive alliance with a nation most englishmen dislike russia would thereby gain british support in her projected project c d far eastern war with japan also a iso winning a comparatively free hand to ex expand p a d westward by c exercising hitler like pressure on baltic states like finland latvia and estonia out of this britain may hope will come a german russian war in which eu ropes dictators will slaughter c cacci ich other |