Evening star., 1939-09-27
Pan-America Farley
Debates u. ). Silver
Purchase Policy
Mexico Will Submit
Plan for Stobilizine
Market for Metal

Oy the Associated Press.
PANAMA, Panama, Sept. 27.-The
question of the United States silver
purchase policy was raised today at
the neutrality conference of 81
American republics.
The delegation of Mexico, which
has benefited from that policy in
the past, announced it would submit
to the conferences Subcommittee on
American Economic Cooperation a
plan for sterilization of the silver
market.
Foreign Minister Eduardo Hay,
heading the Mexican group, said he
would ask for clarifying declara-
tioh on the United States silver
policy, which, he said, benefits the
economy of several American coun-
tries" Such declaration, he indi-
Gated, would be a factor for sta
biltZation.
After announcing the plan Hay
conferred for half an hour with Dr.
Herbert Feis, economic adviser to
the United States delegation here.
Called Aid to Commerce.
Mr.. Hay said that to INTENSITY
commerce among the silver pro-
ducing countries and other republics
of the continent" creditor nations
should establish methods for the
acceptance of silver lin the lquida-
ton of inter-American balances"
He said the degree of acceptability
Of both gold and silver in inter-
national transactions depended even
more than before the European con-
flict on acceptance by creditor ma
tions of silver in payment of inter-
national balances.
Mr.. Hay said conditions in Europe
would intensity the flow of gold to
this continent and make even more
onerous accumulations of this metal
in the possession of Central Ameri-
can banks.
Meanwhile, delegates to the con-
ference debated details of the pro-
posed sea patrol were unanimously
agreed in principle.
Type of Patrol Debated.
Some delegates said there was a
difference of opinion on whether
the patrol should be regional or gen.
eral The regional proposal drew
argument of some that it would de-
stroy the effect of the unanimity of
the American nations.
The plan, submitted by United
States Undersecretary of State
Sumner Welles, excepted Canadian
waters from the proposed patrol
because Canada is at war.
Cuba sponsored the proposal
Jointly with the United States. Ar
gentina, Uruguay and Brazil, who
already have an agreement to guard
the eastern coast of South America,
were expected to lend aid to the
plan.
This belief was strengthened by
the statement of Leopoldo Melo,
head of the Argentine delegation,
that he had prepared other specific
proposals, but would study the pa
troll plan with cordiality.
Outlying Islands Included.
The Welles suggestion tentatively
called for protection of waters
around the United States and
South America. This included out
lying islands as far north as PaSsa-
maquoddy Bay, Me-, eastward and
south in the Atlantic to the Straits
of Magellan, thence northward past
Guadalupe off Southern California
to a point off the Pacific boundary
between the United States and
Canada.
Canal Zone residents and repre-
sentatives of Panama suggested
that the United States patrol the
Caribbean Sea and both Atlantic
and Pacific approaches to the Pan
anna Canal
Six principal points called for
under the Welles plan are as sub
mitted yesterday:
A merchant shipping safety zone
with the United States bearing the
chief patrol burden. An attempt
would be made to prevent searches,
seizures, commerce raiding and
ether belligerent action in this area
A ban on belligerent submarines
IN American republic ports.
A joint representation to bel
fgerents stating neutrality declara-
tions of the Americas.
A study to stabilize monetary and
commercial relationships between