Evening star., 1939-09-29
u. 5. Due 10 Escape
Trade Complications
OF World War
Export Of Cotton to
Britoin in Burter Plan
To Sturt Soon
By the Associated Press.

By the Associated Press.
With America about ready to ship
cotton to England in exchange for
rubber under the terms Of barter
agreement. officials have concluded
that the United States will suffer
fewer international complications
over strategic war materials than
occurred in the World War.
In the first year of the World
War Britain placed an embargo on
the export to the United States Of
such things as rubber, hides, jute.
manganese, tungsten ore and other
ingredients Of steel. This was re-
moved only after the State Depart
ment negotiated a working agree
ment' with London, offering to take
steps to insure the correctness Of
manifests of outgoing cargoes.
Britain at that time objected to
the use of such materials in the
United States for the manufacture
of equipment that might be sent
elsewhere, perhaps indirectly to
Britain's enemies. President Roose-
velt advised Americans at a press
conference Tuesday against selling
such materials abroad. saying a
word to the wise was sufficient.
Cotton Shipments to Start.
The word to the wise was inter-
preted by many to mean that if
Britain saw such materials being
resold by American holders to other
nations. she would not feel inclined
to permit shipments to this country
to continue.
The 100000 bales of cotton which
the United States is sending Britain
In exchange for 175.0o0 900 pounds
OF rubber will begin to move out of
American ports next month.
The rubber will start coming to
the United States sometime there
after. The agreement stated that
the products would be divided
equally among the ships of both
countries, but this might not be
possible if Congress changes the
Neutrality Act and forbids Ameri.
can ships to carry goods to bellig.
erents
Officials are encouraged by the
increase in the maximum quotas
of production of rubber permitted
by the International Rubber Pro-
ducers' Committee. The quota has
been lifted successfully this year
from so to 10 per cent of capacity
and is to be raised soon to Is per
cent.
The maximum quota of tin has
been raised in about the same time
from As to 60 per cent. and for the
next quarter to 100 per cent.
More for Other Nations.
The increase is made all the more
noticeable in its effects by the fact
the German importing market is
now entirely cut of, so there will
be more to 60 around among the
| other nations.
The price dislocation caused by
the war will not affect the amount
of cotton to be exchanged for rub
Der. which is set on the ratio of the
average prices for both products over
the six months ending June %.
It is not believed that either coun-
try will make immediate use of the
traded products, although the agree
ment says they may be used in
the event of major war emer-
| gency.' 1t is presumed that the
cotton and rubber are to be stored
by the respective recipients, re-
| gardless of the war. until such time
as they are drastically needed, and
meantime buying in the regular
market will continue.
The negotiations for exchange of
strategic materials with the Meth
erlands and Belgium have arrived at
| nothing, officials said.