Evening star., 1939-01-03

blend of official diplomacy and
Government assistance which char
acterizes the efforts, in particular
Of Germany and Italy, where gov
ernment subsidies are employed and
the entire diplomatic stats of both
nations act as statesmen.
In the United States, not only are
Government subsidies to aid in this
sale of American machines unthink-
able, but ambassadorial and minis
,erial plenipotentiaries hold aloof
from sordid business transactions,
leaving the American agent depend
ent altogether upon the American
commercial attache, who is a minor
officer of the Embassy or Legation,
as the case may be.
Moreover, frequent developments
at Washington impede our sales. A
few years ago some United States
aviation missions established in
South America had created a grow
, ing business. The advent of an
air-cooled engine gave the American
planes an advantage. The SIM
plicity and sturdiness of the Amer
lean machines in general have given
to the American manufacturer the
same type of preference as the
American automobile has enjoyed in
comparison with other makes.
Nye Probe Changed Picture.
About the time the Germans and
the Italians had begun to establish
special aviation missions to develop
their aircraft industry, fate inter-
vened for them in the shape of the
Nye investigation. No report of the
efforts of the airplane manufactur-
ers of the United States to sell
airplanes in South America would
be complete without mention of the
erect OF this Nye armament inves-
tigation before Congress.
Whatever the result has been to
washington, and however desirable
the investigation was, the fact re-
mains that in South America our
sale of airplanes to governments will
be affected for very long time.
During the days of the investiga-
ton, everybody's dirty linen was
washed In the open, including some
clean linen belonging to people be-
?ond any reproach. Doubtless there
are both kinds of linen in connection
With important Government mar
setng in South America.
When the exposures of the Nve
investigation began to appear in the
american press, Latin governments
*h''ddered and their agents quit
dealing for American planes.
While they still remember the
Nye investigation, it has again be-
come possible to talk about Ameri-
can equipment in the aircraft line.
out this is only because of the in
disputable superiority of the Ameri-
can aircraft. In spite of the handi-
caps, American airplanes to the
value Of over $1,0O0,O0O in our cur
rency have recently been sold to
Latin American governments. This
includes the recent purchase of 10
Northrop attack planes, of 7 North
:op pursuit planes and several am
phibians.
Effect of Neutrality Act.
Our future sales are also affected
by the Neutrality Act. In a land
of sudden emergencies, the Latin
governments are conscious of the
uncertainties of doing business
with a country inhibited by a neu-
trallty act such as might suspend
in the very air an aircraft bound
Tor delivery to a South American
government, which had been passed
from peace to war during the fuel
ing of the ship.
The Neutrality Act makes diff
cult the closing of contracts. The
other aircraft countries, observing
the embarrassment of the Ameri-
can agents, push on in the gleeful
CONSCIOUSNESS, not only that they
nave no restraints, but the direct
support OF their eager governments
Italy has established not only an
, aviation mission in Peru, but a
branch of the Caproni factory,
which at present is an assembling
plant but contemplates increasing
it to manufacturing plant.
Inc Italians have recently had
some difficulty with the functioning
OF their planes, and the superiority
OF the American machines as shown
by the uninterrupted safety record
OF their transportation companies
is again attracting attention.
The keenness of the German COM
petition is evidenced by an incident
in Brazil, which had entered into a
contract to buy something over two
dozen planes from United States
manufacturers. The Germans
sought to void this sale by Offering
to the Brazilian government, free
OF any charge whatever, a like num-
Der OF planes. The German effort
was backed by the entire diplomatic
staff of the Nazi government. They
explained to the Brazilians that it
was good neighbor gesture and
made possible only by the willing
ness Of the Nazi government to sub
.sidize some planes for Brazilian
benefit.
Good Job of Resisting.
We did an unusually good Job
of resisting, and finally by the aid
of the commercial attache, who
brought the Brazilian governments
attention to the fact that the United
States is the best customer Brazil
has for her coffee.
The United States manufacturer
has probably saved his contract,
but 1t is believed that entering into
1.-The considerations which prevented
Germany from destroying one of
our trades by offering the same serv-
ice free, was. the growth of the
Brazilian antipathy to the Nazi