Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-04-13
Kennedy Suggested
To Handle Deals
Under Barter Plan
Ambassador Believed
Able to Cut Red Tape
And Speed Negotiations
BY the Associated Press.

BY the ASSOCldteu EItsS.
The job of bartering American
cotton and wheat for rubber, tin
and other strategic war materials
may be assigned to Joseph P. Ken
nedy, Ambassador to Great Britain.
Senators backing the scheme said
today Secretary of State Hull ap-
parently had received favorably a
suggestion that Mr.. Kennedy be
delegated to undertake preliminary
negotiations.
One Senator who asked anonymity
said he believed the Ambassador, be-
cause of his contracts with British
officials, might be able to cut away
much of the red tape that ordinarily
would surround discussions.
As outlined by Senator Byrnes,
Democrat, of South Carolina the
barter plan would call for an ex-
change of surplus American prod
ucts for essential materials not pro-
duced in this country. Contracting
parties would agree to store these
materials for five years.
LlCcuSCS lOT war VkdtCIlAlSs
Meanwhile, the State Department
disclosed that Great Britain and
France obtained licenses for the ex-
port of about $25O00,0O0 worth of
war supplies from the United States
In the first three months this year.
British licenses amounted to $l3,-
202,967 and French licenses to SILL
134,764, although the actual ship
ments to the two countries during
the period were valued at just over
$lO,OOG6OO.
British dominions and colonies
also are purchasing American war
supplies.
Canada is the principal buyer.
She obtained licenses from the
State Department in the first three
months of this year for S349 ,299
worth of arms and munitions.
Government financiers estimated
that foreign countries, particularly
England, France and the Neither
lands have about $8000,000,000 in
this country available for purchase
OF supplies and food in case of war.
Much of this wealth is owned by
the governments of those countries,
and the remainder could be seques-
tered by them from their citizens
as was done in the World War.
These reservoirs of purchasing
power are particularly important be-
cause the johnson Act, which for
bids war debt defaulters from bor-
rowing money in this country, would
hinder, if not altogether bar. pur-
chase OF supplies on credit here.
Gold for Safe Keeping.
Particularly in the last six weeks,
European governments have been
shipping gold to the New York Fed
eral Reserve Bank for safe keeping.
The amount of such so-called ear
marked gold" is about S650,OO0, 900.
Who owns it is an official secret, but
the fact that England, France, the
Netherlands and Switzerland have
been the foremost shippers of late
indicates the bulk of it is theirs.
The remainder of the foreign re-
sources in the United States is di-
vided between bank balances and in
vestments.
A real market problem exists with
respect to foreign investments in
American securities and property,
totaling about 100000. Sud-
den liquidation of these holdings
might swamp American markets,
but officials have indicated they
have made plans by which some
public or private American corpora
ton would be formed to buy these
assets and liquidate them in a way
to prevent market panic, if the need
arose.