The Waterbury Democrat., 1939-04-11
WAR MATERIALS
 SOUGHT BY J. s.
State Dept. Starts Out to Barter With Nations for
 Strategic Supplies
BY HOBART c. MONTEE (UEited Press Staff COrresp0ndent)

enable the United SCaCeS ana Great Britain to fortify themselves with reserves and supplies badly needed in wartime.
 Henceforth, the chief proponents of barter trade have been the total- itarian nations.
 Secretary of State Cordell Hull and his aides approved 8 proposal by Sen. James F. Byrnes, (d) s. C., to trade surplus wheat and cotton to Great Britain, Holland and Bel gium for their surplus rubber, tin and other strategic war materials.
 Planning Proposed Deals
 State department officials will soon initiate preliminary converse tions with diplomatic representa- tives of those countries to arrange the proposed deals. This country would urgently need reserve supplies of rubber, tin and nickel in event of war. The European countries would need reserve supplies of cotton, which is a war material, and wheat, for food.
 Because the totalaitarian powers lack the commodities which the United States requires, they auto- matically are excluded from the proposed arrangement. Observers saw the possibility of an extension of the principle into those coun- tries where German barter deals have seriously curtailed American exports.
 Requires No Legislation
 The plan requires no legislation, the authority coming from the reciprocal trade treaty act, but any trade would have to be sanctioned by the senate. It would require the United States and the governments with which it trades to store the commodity received for least five years so as not to disrupt world markets by dumping large quan- titles.
 It would require little or no cash outlay. It would, however, require legislation to tranhfer title of loan stocks of cotton and wheat from growers to the government. The government has made loans on ap- proximately 100,000,000 bushels of the wheat surplus of 275,00000 bushels and 11,300,000 bales of cot- ton surplus of 14,500,000 bales.
 The prices at which commodities were traded would be arrived at by negotiation.
 Will Not Affect Treaty
 Hull, Byrnes and others connected with the plan emphatically denied that it would affect the reciprical trade treaty program. Hull said it was entirely outside the normal channels of commerce, inasmuch as it contemplates deals directly be- tween governments, and for mater ials intended for reserves in na- tional defense. The reciprocal trade treaties specifically affect individuals or corporations engaged in interna- tional trade.
 Hull is bitterly opposed to the barter system as employed by Ger many and Italy, accompanied by the use of bloced or managed cur- rencies, restricted exchange and the necessity for evenly balanced trade between each two countries. But he has repeatedly stated that he has no objection to barter ar- engagements so long as they are not restrictive. He emphasized that he approved the Byrnes proposal on the understanding and assurance that the deals would not interefere with international commerce.
 Expect Unanimous Support
 Congressional support was antici- pated from practically all groups. Chairman Key Pittman, (O New, of the senate foreign relations commit tee, described the proposal as pretty good scheme" Sen. Bennett Champ Clark, (d) Mo, isonlationist and critic of the administrators foreign policy, was "very much in favor of the proposal" Sen. John H. Bankhead, (d) Ala, cotton bloc leader, was strong for the plan," while Sen. Walter F. George, (d) Ga, had no objection "so long as the cotton is bartered at the current market price"
 War department officials endorsed it, too. They estimated that the rub Der and tin which the United States should have in reserve, would cost approximately $150,000,000 at cur- rent prices. Congress recently appro- priated $40,000000 for reserve sup- plies. War depart::- ent officials would be glad to get reserve sup- plies of rubber and tin through barter deals and use 10000 000 ap- propriation to purchase other strat- egic materials.
 Neutrality Defense Actions
 Byrnes barter proposal was an- nounced as the following develop mets if neutrality and national de- fense took place:
 1. The house foreign affairs com- mittee began hearings on proposed revision or repeal of the neutrality law. It will hear Rep. James Wads- worth, (r) N. Y., former chairman of the senate military affairs com mittee, who os opposed to the pres ent law. The senate foreign rela- tions committee, considering similar whom are united knowledge of men and things, industry, integrity, im- partiality, and firmness; and this person should reside on the spot What better indorsement of the city manager plan, as means for mak- ing democracy effective, could be