Evening star., 1939-12-13
Congressional Action
Discussed 10 Permit
Arms Sale 10 Firms
Agency Policy, Not Law,
Bor to Filling Orders
For War Supplies
BY JOHN C. HENRY.

| For War Supplies
BY JOHN C. HENRY.
Congressional action to clear the
way for further United States aid
to Finland was being discussed
here today as efforts of the be-
leaguered Baltic country to obtain
American military supplies ran into
policy obstacles as defined or ap-
proved by the legislative branch.
Already extending $4,000, 900
credit to a Finnish American trad
ing corporation for purchase OF sur
plus foodstuffs and other civilian
supplies, the Export-Import Bank,
for example, is abiding by its con-
sistent policy OF declining any loans
for military materials. While no
such prohibition is contained in the
statute under which the bank op-
crates, the policy was adopted early
| in its history and was transmitted
to Congress in reports subsequently
approved by the legislators.
Meanwhile, President Roosevelt
concerned himself with other phases
OF Europe's wars, scheduling several
conferences today with officials pre-
pared to bring in first-hand infor-
nation.
Ambassador Davies on List.
Among those on his appointment
list were Joseph E. Davies, Ambas-
Sador to Belgium, who is home for
a series of conferences at the White
House and State Department. Mr.
Davies saw Secretary Hull before
the White House conference. Others
on the Presidents list were: Chair
man Emory S. Land of the Mari
time Commission, who is currently
attempting to devise plans for put
tlng into new services that part OF
our merchant marine which has
been made idle by the war, and
Senator Truman, Democrat, of Mis-
sourl, who has just returned from
Nationwide inspection trip of our
national defense facilities. In ad-
dltlon, Secretary Hull has been
asked to come to the White House
later this afternoon.
In the opinion of some officials of
the bank reversal of its policy of
refusing loans for military materials
without express consent of Congress
would constitute a breach of faith,
or would be so considered by some.
Since the bank is close to the end of
Its current capital, a circumstance
aff1rmed by President Roosevelt at
his press conference yesterday, an
expected request for further funds
this winter may provide an opening
for any desired relaxation of the
lending policy.
The question of actual availability
OF military supplies also involves
positive Government action since
commercial firms are working to
capacity already on either Ameri-
can or European orders and have
little material at hand for immedi-
ate shipment to the Firms. In this
regard permission might be given
American arms firms to divert. a
portion of their production under
order OF this Government to Finnish
order.
Congressional Opinion Wanted.
AS in the case of the Export I'm
port Bank policy, however, depart
ment ofncaals are hesitant to take
such a step without some indication
OF congressional opinion.
That the Films are desperately
anxious for American military sup
plies was made clear yesterday by
their Minister, Hjalmar Procope,
and their military attache, Col. Per
zilllacus, in visits to War and Navy
Department officials here. Their
needs were outlined to Assistant
Secretary of War Louis johnson and
Acting Secretary of Navy Charles
Edison.
The only order likely to be filled
at all soon, however was one for a
substantial number of gas masks.
Although President Roosevelt said
yesterday that he has no changes
in the neutrality statute in mind
at present, two factors may lead
to notifications in policy at the
hands of Congress. One is the OBJ
v1ous widespread American SYM
pathy for the Firms IN their re-
sistance to Soviet aggression. A Sec
ond is the fact that most of the
isolationist strength is in the Mid
west and West, where there is a
considerable population OF Scandi-
navian descent, deeply sympathetic
to the plight of the small North
European nations.
An expression of the close friend
ship between this country and Fin
land was revealed yesterday in re-
lease of a message from President
Kyosti Kallio to President Roose-
welt,
President Kallio's Answer.
President Kallio cabled:
Accept, Excellency. my heartfelt
thanks for fluctuations on ami
of Finland's independence and for
token of sympathy toward Finland
who has been obliged with weapons
to defend her independence, liberty
and rights. Your message received
with feeling of relief and you may
rest assured that whole Finnish ma
ton is deeply thankful to you and
American people"
Mr.. Roosevelt also reported yes
terday on the efforts of the Amer
ican Red Cross in the Finnish emer-
gency.