Evening star., 1936-02-23
BRITAIN EXPECTED
TO SPEED UP HUGE
DEFENSE PROGRAM
Chamberlain Attack Likely
to Force Coordination
Into One Ministry.
IMPORTS CLIMB FASTER
THAN EXPORT VOLUME
Raw Products Rushed for Arms
Purposes-Rising Standard of
= Living Also a Factor.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. February 22.-Cables
and wireless dispatches to Business
Week give the following survey of
business abroad for the week ending
tomorrow:
LONDON.-"As result of Foreign
Secretary Austin Chamberlain's open
attack on the government this week,
the country's entire defense program
is likely to be co-ordInated under one
ministry and speeded up; eventually,
it. must mean a political revolt, with
the Tories opposing the government
and possibly Prime Minister Baldwin
resigning.
'The commercial aspect of the
whole thing is. the reinsurance of a
large spending program on arms and
aircraft.
Auto Firms Expand.
"Britain's motor manufacturers are
continuing to expand and diversity
after the model set by the larger
manufacturers in the United States.
"Austin Motors, after deciding only
a few months ago to erect its own
mills to assure steady supply of steel
for its expanding automobile business,
is now considering the construction
of airplanes in factory extensions al
ready under way.
Imports are expanding more rapid
ly than exports. Business declares
this is due to two things: Rush i'm
ports of raw and manufactured prod
ucts essential for the rearmament pro-
gram and imports demanded by the
rising standard of living.
Leaders expect the government to
adopt policy of deliberately lower
ing the value of sterling in order to
force exports, and may later increase
duties on imported goods"
Exports Plan Falls Flat.
PARIS.-"France's plan to create a
fund of about $40000,00O with which
to insure credits granted by manu-
facturers to the Soviets has fallen
fiat.
THE plan was that the government
would guarantee credits up to five
years, as is being done both in Ger
many and Italy on orders secured
from the Soviets.
But the Caisse de Depots ct Con-
signations was asked to undertake the
insurance of credits and the parlia-
mentary committee in charge of these
funds refused to allow them to be used
for this purpose"
Germans Disappointed.
BERLIN.-"Germans who flocked to
t opening of the annual Berlin au-
tomobile show this week looking for
a new cheap car were disappointed.
There were new models in a dozen
different designs, but there was no
sign Of the wonder" car which Chan
cellor Hitler has urged German manu-
facturers to produce for the 5000 900
Germans who can't now afford auto
mobiles, but who would buy cars of
the small $500 variety, which Hitler
hopes will be produced shortly.
Large orders for tankers placed
last year by Standard Oil and Shell
were instrumental in producing a
snlpoulidlng boom. Shipbuilding
orders were one Of the few ways in
which the oil concerns could liqui-
date their frozen mark balances in
Germany.
The United Fruit Co. is now pre-
pairing to recapture at least part of
the German trade lost during the last
three years. Together with the two
largest German fruit importers Gus
tav Scipio in Bremen and Hans Off
In Hamburg) it has launched the
Union Handelsand Schiffartsgesell-
schaft. which is to engage in transpor-
tation OF bananas from Central Amer
lea to Bermen, Germany's main port
of entry for fruit"