Evening star., 1940-08-02
8O96 Of Scrap Metal
Japan Buys in U. 5.
Untouched by Ban
Change in Regulations
Could Control All Such
Purchases, Experts Soy
BY the Associated Press.

BY the Associated Pfess.
Government experts disclosed to-
day that IS to 80 per cent of Japan's
scrap metal purchases in the United
States were untouched by the new
export licensing system.
They pointed out, however, that
all Japanese purchases of this i'm
portant war material could be
brought under control or embar-
coed at any time merely by chang
ing regulations.
Such changes would be made, Off
cials said, only if it was found that
defense needs required the metal to
be kept at home.
The reason that such a large
share of japanese scrap metal pur-
chases is outside the licensing sys-
tenn is that the existing regulations
apply only to No. l heavy melting
steel and iron scrap. Experts esti-
mate that this classification &C
counts for only 20 to Is per cent
of Japan's scrap metal purchases
over long period.
Whether this 20 or IS per cent of
japanese orders is being banned un-
der the new system, or merely
brought under control, has not yet
been disclosed American officials
did report today that some exports
of No. heavy melting steel and iron
were being licensed. but whether
these were going to Japan, they
would not say.
Restrictions May Be Asked.
On New York, Robert w. Wolcott.
president of the Lukens Steel Co.,
said independent manufacturers of
steel were about to ask restrictions
on sales abroad of all grades of scrap
steel. The reason for the plea. it
was learned, is that steel makers
estimate that present stocks of scrap
in the United States "are equiva-
lent to only about six weeks con-
sumption by the Industry
One phase of the new licensing
system-covering aviation gas-is
known to have affected the Japa-
nese. President Roosevelt clamped
an embargo earlier this week on
shipments of aviation gas to points
outside the Western Hemisphere.
This cut off an important supply
line for Toxic in her war against
China. The japanese bought los 900
barrels of aviation gasoline from this
country during the first six months
of this year. Their purchases were
lower than last year, due, Govern
ment experts say, to the fact that
they had accumulated a considerable
reserve and had bought considerable
California crude last year, which
the cracked into aviation gasoline
in their own plants.
Even though Japan already had
been buying less aviation gasoline
in 1910 than in 1899, Government
spokesmen in Toxic denounced the
embargo
Defense Needs the Criterion.
The japanese government an
nouncement yesterday of a foreign
policy which would extend her DOM
ination over French ndo-China and
the Netherlands East Indies raised
a question, in many analysts minds,
as to whether the United States ex-
port licensing system might be
frightened to try to dissuade her.
State Department. officials insist
ed, however, that the export control
policy would be determined solely
on the basis of national defense
and would have no connection with
foreign policy.
Secretary of State Hull, just home
from the Havana conference, de-
clined immediate comment on the
new Japanese statement. He has
shown no sign, however, of yield
ing from his previously stated po-
sition that any attempt to change
the status quo by force would be a
threat to the peace of the entire
Pacific.
Meanwhile Juan Francisco de
Cardenas, the Spanish Ambassador,
informed the State Department yes
terday that Spain's oil imports dur
ing the last two years have been
exclusively for its own needs and
not for Nazi Germany or Fascist
Italy.
The Ambassador called on Under
secretary of State Welles to "clarify"l