Evening star., 1939-10-15
Britain Seen PLANNING
Industrial Empire
In Canada
Ready to Spend Three
Billion Dollars on Plan,
Wall Street Reports

OuItOIi OOIIuIS vi TlOHS
Wall Street Reports
BY the Associated Press.
NEW YORK, Oct. IA. Leading
Wall Street financial sources said
today the British government is
planning to spend up to $4,000, ,000,-
600 to create in Canada a great in
dustrial empire. capable of supply
ing much of Britain's needs for a
long war
Such plant program could make
Canada a key military sphere dur
ing the war, these Wall Streeters
said, and could with proper flnanc-
ing be converted after the war into
an important part of the Western
Hemisphere trade economy.
Not less than $500,000, 900 is avail
able for early use in the plan, 1t
was said.
The size of the program would be
determined by two factors-the ef-
tSSVAVSAiSSc ol lAldIl
against Great Britain's factories
and the amount of necessary ma
terial which can be imported from
the United States.
Negotiations have already been
begun. they said. by representatives
OF the British War Supplies Com
mission and United States industrial
concerns, including General Motors
and Consolidated Aircraft.
Discussions in Capital.
Concurrent discussions, they said,
have taken place in Washington
diplomatic circles and in the finan-
cial sector here, where England and
France are reported to have not less
than $6,000,0 100000 and possibly as
much as $4,000, 900 900 available re-
sources Gncluding commercial cred
its which might be limited by con-
gressional action.
The conversations with indus
trialists, it was said, look to the
establishment in Canada of new fac
tories, owned by Canadian char
tered subsidiaries of the United
States companies. to produce in or
der of priority what Britains war
machine needs most.
Construction of plants, according
TO tentative plans, would be
financed, they said, by one of the
methods used by Britain here dur
ing the World War, most probably
by loans from the British govern
ment, payable out of profits over
a period of years, unpaid balance
cancellable upon conclusion of an
earlier peace.
England was represented as being
fairly we'll stocked with supplies
and war material for a period of
months, but laying plans to cover
needs for a period of years in event
the war should be long one.
Protection Of Docks Problem.
In addition to large stored stocks
OF needed articles, England was
said to have nearly completed in
Great Britain factory decentrali-
zation plan. under which all kew
items are manufactured in not less
than three plants, geographically
separated. SO that destruction of
one, or even two, would not in
terfere titally with the flow of
production.
In addition, England was said
to feel satisfied with the growing
efficiency Of its cargo convoy sys-
tenn and its completed program of
decentralizing and camouflaEine
alrports. Vulnerability to air at
tack of docks, harbor equipment
and ships at anchor or wharfed was
said to be the one Immediately
pressing problem.
However, there are some things
England reputedly feels unable to
delay longer in procuring for the
future, and leading this list is air
planes.
establishment OF Britis h-con-
trolled, but to some extent United
States-owned aircraft factories on
Canadian soil was said to be the
f1rst goal of the British war sup
plies commission.
Members of the commission now
established at Ottawa are Admiral
Sir Percy Addison. Maj. Gen. R.F.
Locke. j. Crone. J. B. Gordon and
A. c. Boddis. Several other mem
bers will shortly arrive from Lon
don, it was said.
Urge Factories in Canada.
The commissions representatives
were reported as now urging Gen.
eral Motors to set up on Canadian
soil across the river from Detroit
large new aircraft and aircraft
engine factories.
Second on the urgent list was
said to be metallurgy, in practically
all branches, especially for treat
ment of semi-processed iron, steel
and copper.
Next in order of priority, these
wall Street sources said, would come
establishment of shell casing fac
tories and assembly plants for put
ting In the charge and propeliant.
Factories for manufacturing parts
OF and for assembling machine guns
and rifles and for manufacturine
precision instruments for artillery