Evening star., 1938-12-04
World Watches
AggressiveU.S 5.
Trade Policy
Latin American Plans
And Arms Program
Worry Dictotors
srecial Dispatch to The Star.

srecial Dispatch to The Star.
NEW YORK, Dec. 3.-The United
States Is stepping to the forefront
with its recent aggressive foreign
policy plans, according to Business
Week today.
No country except the Soviet
Union has taken a more determined
stand against the Reich's foreign
policies, to which the United States
adds its stubborn resistance to Ger
man foreign trade technique.
But it is the Latin American pro-
gram which is gradually being un-
folded by Washington which is
creating the greatest stir. Tied
with Washington's gigantic arms
program, it is beginning to worry
some of the dictator countries.
The French general strike plan
was defeated this week, and mar
kets reacted bullishly. But the fact
can't be ignored that the French
outlook is still bad. Daladier may
succeed in holding the opposition
at bay. but in doing this he must
make himself virtual dictator of
France.
More Control Ahead.
His recovery program will mean
increasing regulation of business
and labor on the German and
Italian plan. and the realization
that this is in store for them may
cause the Right and the Left in
France to clash.
France startled the Germans this
week by appointing commercial
mission which has practically
reached an agreement with Ru-
mania for larger purchases of crude
oil, and which is preparing now
to leave for Bulgaria to draw up
trade deal. British and French
commercial activity in the Balkans
will help to limit the economic de-
pendence of those countries on
Germany.
Britain's shadow plant program
for speeding the rearmament busi-
ness has been so successful that it
is being extended, but there is a
widespread belief in London now
that rearmament on the scale re-
quired under present conditions
cannot be carried through in this
way and some scheme for full in
dustrial mobilization in the near
future is almost inevitable. London
sold dollars and bought francs when
the French strike failed. but cheer
fulness was restrained.
Pound Causes Alarm.
British business generally is abov,
the levels of October, and the Christ
mas trade outlook is good, but the
weakness Of the pound is causing
alarm. December ordinarily marks
the end Of Britain's heavy food i'm
port season and the beginning of
large exports, which should strength
en- the currency.
Nevertheless, the weakness may
persist If tensions on the continent
again become acute and there is no
sign that rearmament will be curbed
in some big international agreement.
The internal situation in Germany
is believed to be extremely serious.
Good crops have not been accom-
panied by any cut in imports, which
the British believe proves that the
Reich is laying in emergency food
supplies. Rumors have come from
Berlin that the Reich is preparing
next year to force the creation of
an independent Ukraine, built
around Ruthenia (now a part of
Czecho-Slovakia but including Pol
1sh Galicia (Which has a Ukrainian
population OF more than 6,0OO,OOO),
and the Soviet Ukraine, one of the
richest regions in European Russia.
DR.. Schacht Returns.
Germany caused concern by two
other moves: Cd The reappear-
ance of DR.. Schacht in the
limelight is believed to mean either
that Germany is in serious economic
distress or that the Reich needs his
advice for major new trade moves:
while 90 the appointment of Col.
Won Schell as "motorization dictator"
indicates without question Ger
many's determination to meet the
enormous arms programs in neigh
boring countries with further ma
tlonalization of automobile produce
ton for military purposes. Col. vbn
Schell is ordered to reduce to 80 the
number of types of passenger cars
produced in Germany, and truck
types to 10, and to standardize all
replacement parts.