Evening star., 1938-11-13
j. ). Trade Pact
With England
Likely Soon
Business Week Reports
Deal With japan
Also Possible
Special Dispatch to the Star,


announced very soon, says Business
Week today. With the promised
visit to this country of the King
and Queen of England, it seals the
close trade ties of these two nations.
It does not mean that Britain is
going to abandon its post-Munich
plans of playing ball" with Germany
also.
A few executives already believe
that the United States is maneuver-
ing now to find a way of doing
business with China, booty of the
other great totalitarian state. Be-
hind recent warnings to Japan are
quiet talks of the need for setting
up in China proper a government
apparently less subject to Toxic
than the Manchukuan regime, and
certainly more tolerant of foreign
business.
Only with such government
might Washington be tempted to
do large-scale business on a credit
basis. Japan's needs for assistance
in exploiting the new empire may
yet tempt Toxic into deal.
British Outlook Better.
British business was slightly bull
ish this week. Unemployment de-
clined in October, for the first time
since the recession, and the recovery
was notably in the cotton, coal, and
steel industries. Every English
executive watches cotton as one of
the most sensitive barometers of
business; 1t is usually first to slump
into depression, and the first in
recovery. The stock market re-
fiected the optimism, but volume is
still small.
France is threatened with a cabi-
net crisis this week, because of some
OF the financial reforms Premier
Daladier is demanding in the drastic
program to set Frances financial
house in order. Under consideration
at this time of the parliamentary re-
bellion were a new tax on the in
terest derived from government
bonds, and cut in the war pensions.
The DEGREES which would effectively
nullify the 40-hour-week law, at
least in the armament industries,
are also being pushed.
U. S. Materials Needed.
Germany needs desperately cot
ton. copper. lard and other raw
materials which might be secured
in the United States, but since
Secretary Hull's biting references to
Germany in his address at the Ma
tional Foreign Trade Convention,
has given up hope of making a
deal which would make it possible
for Germany to secure large guam
titles of these items.
The dilemma came to light this
week when it was revealed that
both the steel and cement industries
were complaining of their inability
of getting machinery for the ex-
pansion of their plants which is
demanded by the Nazi authorities
next year.
German machine builders are too
tied up with government arms
orders to make prompt delivery.
Little business is likely to go to
the United States, however, because
Berlin will use any dollar exchange
to buy essential raw materials
rather than machine equipment.
Argentina Curbs Imports.
The Argentine this week raised
another barrier to imports, particu-
larly of luxury items many of which
come from the United States. After
December l no goods will be clear
ed through customs unless the
shipper has an exchange permit
covering payment.
At the same time, the Argentine
finance ministry has lowered the
official exchange rate from 16 to
II pesos to the pound sterling, or
just under four pesos to the dollar.
The Importance of this to the
American exporter Is Cd that he
is likely to run into increased diff
Guilty in securing exchange permits
to cover his shipments farm equip
ment is virtually the only item
which has been freely admitted for
nearly year,, and ca that Argen-
tine exports may be stimulated by
the cheapening of the peso, thus
helping to correct the country'S
large unfavorable trade balance.
Canadian business strengthened
moderately during the past week.
Crop marketing and mining are
chief sources of betterment. These
activities sent carloadings above the
1887 level for the first time this
year. The stock markets also were
more active than at the same time
last year.