Evening star., 1940-01-25
Authorization Of Loan
To Finland Forecast
By Senator Brown
Committee O. KS Credit
Of Additional $40, 1000, 900
For Non-MiIitury Purposes
By ]. A. O'LEARY.

A prediction that the Senate will
pass the substitute bill to make 1t
possible for the Export t-Import Bank
to advance an additional $20,000,000
to Finland for non-military pur-
poses was made today by Senator
Brown, Democrat, of Michigan, as
he filed the Banking Committees
favorable report on the measure.
Senate action is not expected be-
fore next week, however, since the
new bill will be sent next to the
Foreign Relations Committee for
review before it is debated on the
floor.
The fact that the Banking Com
mittee reported the measure by
vote of Is to 2 indicates very
strong sentiment for financial aid
to Finland" Senator Brown said.
at indicates also that the Senate
will pass it. realize it still has
hurdle to cross in the Foreign Rela-
tions Committee, but I believe it
will approve this modified proposal"
The bill no longer presents the
Issue of a direct, earmarked loan for
Finland, which the original bill of
Senator Brown would have author
ized up to the amount of $50, 100000
Finland Not Mentioned.
In place of that measure, the
Banking Committee drafted SUBJ
stitute, which merely increases by
500 100000 the general credit au-
thoriZation of the Export Import
Bank, without any specific reference
to Finland.
1t contains three limitations, as
follows: l, that not more than
s30000,000 of credit shall be out
standing to any borrower; 2, that
the banks loans shall not be used
to purchase anything listed as arms,
ammunition or implements of war
In the Presidents neutrality procla-
nation, and 3, that no loans shall
be made that would violate interna-
tional law as interpreted by the
State Department.
The effect of this approach is to
leave the question of further loan
to Finland to the discretion of the
bank, under the supervision of Fed
eral Loan Administrator Jesse H.
Jones, subject to the three major
restrictions.
After counting the $l0000,000 Fin
nish credit allotted by the Export
Import Bank some time ago, the
agency could advance $20,000,000
more after passage of the bill.
Opposition in Prospect.
Meanwhile, there were reliable
reports today that the $100,000,000
general authorization figure may
encounter opposition either in the
Foreign Relations Committee or in
the Senate, aside from the question
of aiding Finland.
Senator Taft, Republican, of Ohio,
made known he will move on the
floor to cut the total to $50,000,000
The Ohioan, one of the two who
voted against the Banking Commit
tee plan, did not base his vote on
opposition to aid for Finland, but
contended $50,O00000 would be COM
pletely adequate to accomplish that
purpose. AS the bill stands, the
financial assistance for Finland
cannot exceed $3o,000,0O0 in any
event. Senator Danaher, Republi-
can, of Connecticut, cast the other
vote against the bill.
Senator Bankhead, Democrat, of
Alabama, is considering asking the
Senate to amend the bill to prohibit
loans to foreign governments. A
similar move in the Banking Com
mittee yesterday was beaten, when
only six members supported it. Sen
ator Bankhead voted to report the
bill out of committee In its final
form it does not specifically direct
any foreign loans, and if the bank
should exercise its discretion, it
could help promote the export of
domestic manufactured goods and
agricultural products through aid to
Finland.
Senator Taft said he did not agree
with Mr.. Jones that the original
100000 credit to Finland is a
good commercial loan, but felt it
was justified on the ground that
the issue was the freedom of small
country. Where the issue "is as
simple as that" he said, the United
States has always done what it
could to help.
Immediate Consideration Unlikely.
With Chairman Pittman of the
Foreign Relations Committee in
Idaho as a member of the senatorial
committee attending the burial of
Senator Borah, it appeared unlikely
the foreign relations group would
take up the loan bill this week
Senator Connally, Democrat, of
Texas, member of foreign rela-
tions, said that group would study
1t thoroughly and might propose
some amendments to guarantee it
would not conflict with the Neu-
trality Act.
One influential member of the
Senate predicted today the bill would
pass, even though action may be
delayed by considerable debate
Mr.. Jones said after yesterdays
committee action thai if the bill
passes, he would regard it as leaving
the matter of further loan to FIN
land up to the lending agencies, but
would not consider it a direction to
make the loan. Senator Brown
added that he thought Mr.. Jones
would understand that Congress
wants to make the loan if it is safe
to do so.
In the committee yesterday a
motion was made to permit the loan
to be used for munitions, but was
defeated without roll-call vote. AS
finally drafted, however, it would
enable Finland to buy any manu-
factured articles not listed as arms,
ammunition or implements of war
in the neutrality proclamation.
Some of those who want to reduce
$100,000,000 figure for loans in gen.
eral are opposed to opening the way
for possible future credits to South
tyfo